X and Y were partners sharing profits and losses in the ratio of 3:2. They decided to dissolve the firm on 31st March, 2016. On that date, their Capitals were X – Rs.40,000 and Y- Rs.30,000. Creditors amounted to Rs.24,000. Asssts were realised for Rs.88,500. Creditors of Rs.16,000 were taken over by X at Rs.14,000. Remaining Creditors were paid at Rs.7,500. The cost of realisation came to Rs.500. Prepare necessary accounts.
