A and B are partners in a firm sharing profits and losses in the ratio of 2 : 1. On 31st March, 2019, their Balance Sheet was:

( Rs.)
( Rs.)
Bank Overdraft30,000Cash in Hand6,000
General Reserve56,000Bank Balance10,000
Investments Fluctuation Reserve           20,000Sundry Debtors 26,000
A’s Loan34,000Less:
Provision for Doubtful Debtors (2,000)
Capital A/c:Investments40,000
50,000  Stock10,000
  Furniture 10,000
  Building 60,000
  B’s Capital 30,000
 1,90,000 1,90,000

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.


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