|Creditors||40,000||Cash at Bank||3,000|
|Workmen Compensation Reserve||21,000||Land and Building||57,000|
|Capital A/c :||Profit and Loss A/c||15,000|
|A 60,000||Advertisement Suspense A/c||6,000|
During the course of realisation, a liability under a suit for damages is settled at Rs. 20,000 as against Rs. 5,000 only provided for in the books of the firm.
Land and Building were sold for Rs. 40,000 and the Stock and Sundry Debtors realised Rs. 30,000 and Rs. 42,000 respectively. The expenses of realisation amounted to Rs. 1,200.
There was a car in the firm, which was completely written off from the books. It was taken by A for Rs. 20,000. He also agreed to pay Outstanding Salary of Rs. 20,000 not provided in books.
Prepare Realisation Account, Partners’ Capital Accounts and Bank Account in the books of the firm.