Rose and Lily shared profits in the ratio of 2 : 3. Their Balance Sheet 2014 was as follows:
Rose and. Lily decided to dissolve the firm on the above date. Assets except bills receivables) realised Rs. 4,84,000. Bills Receivable were taken over by Rose at Rs. 30,000. Creditors agreed to take Rs. 38,000. Cost of Realisation was Rs. 2,400. There was a Motor Cycle in the firm which was bought out of the firm’s money, was not shown in the books of the firm. It was now sold for Rs. 10,000. There was a contingent liability in respect of outstanding electric bill of Rs. 5,000, Bill Receivable taken over by Rose at Rs. 33,000.
