X, Y and Z are partner in a firm sharing profits in 4:3:3. They decided to dissolve the partnership on 31 Dec., 2015. Their Balance Sheet is as under :
Y was depute for realisation of assets and distribution of received amount. He will get 5% of received amount from stock and debtors as a remuneration and will bear all realisation expenses. Y reports the result of realisation as under.
Realised from stock Rs 96,000 and from debtors Rs 72,000. Creditors paid off Rs 76,000 in Full settlement. Outstanding creditors Rs 1,000 paid which was not entered in the balance sheet. Z become insolvent Rs 7,720 realised from his assets. Garner V/s Murray rules apply.
Prepare Realisation A/C, Capital A/c and Cash A/C.
