Raina and Meena were partners in a firm sharing profits and losses equally.
They dissolved their firm on 31st March, 2018.
On this date, the Balance Sheet of the firm, apart from realizable assets and outside liabilities showed the following:
Raina’s Capital Rs 40,000 (Cr.)
Meena’s Capital Rs 20,000 (Dr.)
Profit and Loss Account Rs 10,000 (Dr.)
Raina’s Loan to the firm Rs 15,000
Contingency Reserve Rs 7,000
On the date of dissolution of the firm :
(a) Raina’s loan was repaid by the firm along with interest of Rs 500.
(b) The dissolution expenses of Rs 1,000 were paid by the firm on behalf of Raina who had to bear these expenses.
(c) An unrecorded asset of Rs 2,000 was taken over by Meena while Raina discharged an unrecorded liability of Rs 3,000.
(d) The dissolution resulted in a loss of Rs 60,000 from the realization of assets and settlement of liabilities.
You are required to prepare :
(i) Partner’s Capital Accounts.
(ii) Raina’s Loan Account.
