|Bank Overdraft||30,000||Cash in Hand||6,000|
|General Reserve||56,000||Bank Balance||10,000|
|Investments Fluctuation Reserve||20,000||Sundry Debtors 26,000|
|A’s Loan||34,000||Less: |
Provision for Doubtful Debtors (2,000)
On that date, the partners decide to dissolve the firm. A took over Investments at an agreed valuation of Rs. 35,000. Other assets were realised as follows:
Sundry Debtors: Full amount. The firm could realise Stock at 15% less and Furniture at 20% less than the book value. Building was sold at Rs. 1,00,000.
Compensation to employees paid by the firm amounted to Rs. 10,000. This liability was not provided for in the above Balance Sheet.
You are required to close the books of the firm by preparing Realisation Account, Partners’ Capital Accounts and Bank Account.