Surjit and Rahi were sharing profits (losses) in the ratio of 3:2, their Balance Sheet as on March 31, 2004 is as follows:
Balance sheet of surjit and rahi as on March 31,2012
| Liabilities | Rs.Amt. | Assets | Rs.Amt. |
| Creditors | 38,000 | bank | 11.500 |
| mrs surjit loan | 10,000 | stock | 6,000 |
| Reserve | 15,000 | debtors | 19,000 |
| Rahi's loan | 5,000 | furniture | 4,000 |
| capital's | | plant | 28,000 |
| Surjit | 10,000 | investment | 10,000 |
| Rahi | 8,000 | profit and loss | 7,500 |
| 86,000 | | 86,000 |
The firm was dissolved on March 31, 2006 on the following terms:
1. Surjit agreed to take the investments at Rs. 8,000 and to pay Mrs. Surojit’s loan.
2. Other assets were realised as follows:
Stock Rs.5,000
Debtors Rs. 18,500
Furniture Rs. 4,500
Plant Rs. 25,000
3. Expenses on realisation amounted to Rs. 1,600.
4. Creditors agreed to accept Rs. 37,000 as a final settlement. You are required to prepare Realisation account, Partner’s Capital account and Bank account
