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
