Rita, Geeta and Ashish were partners in a firm sharing profits/losses in the ratio of 3:2:1. On March 31, 2006 their balance sheet was as follows:
Liabilities |
Rs. Amt |
Assets |
Rs.Amt. |
capitals
Rita 80,000
geeta 50,000
Ashish 30,000 |
160,000 |
Cash |
22,500 |
creditors |
65,000 |
Debtors |
52,300 |
Bills payable |
26,000 |
stock |
36,000 |
General reserve |
20,000 |
investment |
69,000 |
|
|
plant |
91,200 |
|
2,71,000 |
|
2,71,000 |
On the date of above mentioned date the firm was dissolved:
1. Rita was appointed to realise the assets. Rita was to receive 5% commission on the rate of assets (except cash) and was to bear all expenses of realisation,
2. Assets were realised as follows:
Rs.
Debtors 30,000
Stock 26,000
Plant 42,750
3. Investments were realised at 85% of the book value,
4. Expenses of realisation amounted to Rs. 4,100,
5. Firm had to pay Rs. 7,200 for an outstanding salary not provided for earlier,
6. Contingent liability in respect of bills discounted with the bank was also materialised and paid off Rs. 9,800, Prepare Realisation account, Capital Accounts of Partners and Cash Account.