Rose and Lily shared profits in the ratio of 2:3. Their Balance Sheet on March 31, 2006 was as follows:
Balance sheet of rose and lity as on March 31, 2006
|Liabilities|| Rs. Amt. ||assets||Rs.amt.|
|lily loan|| 32,000||debtors 80,000|
(-) provision for dubtful debts 3,600
|profit and loss|| 50,000||inventory||1,09,600|
|capitals lily||1,60,000||Bills Receivable|| 40,000|
Rose and Lily decided to dissolve the firm on the above date. Assets (except bills receivables) realised Rs. 4,84,000. Bills receivable were taken over by Rose at X 30,000. Creditors agreed to take Rs 38,000. Cost of realisation was Rs 2400. There was a Motor Cycle in the firm which was brought out of the firm’s money, was not shown in the books of the firm. It was now sold for Rs 10,000. There was a continigent liability in respect of outstanding electric bill of Rs 5,000. Bill receivable taken over by Rose at Rs 33,000. Show realisation account, partners’ capital account, loan account and cash account.