The following is the Balance Sheet of Gupta and Sharma as on December.
The firm was dissolved on December 31, 2014 and asset realised and settlements of liabilities as follows:
(a) The realisation of the assets were:
| Sundry Debtors |
Rs.52,000 |
| Stock |
Rs.42,000 |
| Bills Receivable |
Rs,16,000 |
| Machinery |
Rs,49,000 |
(b) Investment was taken over by Gupta at agreed value of Rs. 36,000 and agreed to pay of Mrs. Gupta’s loan.
(c) The Sundry Creditors were paid off less 3% discount.
(d) The realisation expenses incurred amounted to Rs. 1,200. Journalise the entries to be made on the dissolution and prepare Realisation Account, Bank Account and Partners Capital Accounts.
