A and B are partners in a firm sharing profits and losses in the ratio of 3 : 2. On 31st March, 2019, their Balance Sheet was as follows:

BALANCE SHEET as at 31st March, 2019

( Rs.)
( Rs.)
Creditors38,000Cash at Bank11,500
M Rs. A’s Loan10,000Stock6,000
B’s Loan15,000Debtor Rs.19,000
Capital A/c : Plant28,000
A’s Capital 10,000Investments10,000
 B’s Capital 8,000 18,000 Profit and Loss A/c7,500
  86,000 86,000 

The firm was dissolved on 31st March, 2019 and both the partners agreed to the following:
(a) A took Investments at an agreed value of Rs. 8,000. He also agreed to settle Mr. A’s Loan.
(b) Other assets realised as: Stock − Rs. 5,000; Debtor − Rs. 18,500; Furniture − Rs. 4,500; Plant − Rs. 25,000.
(c) Expenses of realisation came to Rs. 1,600.
(d) Creditors  agreed to accept Rs. 37,000 in full settlement of their claims.
Prepare Realisation Account, Partners’ Capital Accounts and Bank Account.


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