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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.

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Note : No treatment will be done for expenses on realisation Rs.4,100 as the firm has already paid 5% of assets realised as commission for dissolution to Rita Rs.4100 actual expense will be paid by rita personally.

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