A, B and C were in partnership sharing profits in the ratio of 7 : 2 : 1 and the Balance Sheet of the firm as at 31st March, 2019 was:

Capital A/c : Building20,000
 A 12,410Plant 31,220
 B  8,650 Goodwill10,000
 C 80,6201,01,680100 Shares in X Ltd. (At cost)2,400
Creditors 11,2101,000 Shares in Y Ltd. (At cost)10,000
Reserve for Depreciation on Plant 20,000Stock11,240
  1,32,890   1,32,890

It was agreed to dissolve the partnership as on 31st March, 2019 and the terms of dissolution were−
(a) A to take over the building at an agreed amount of Rs. 31,500.
(b) B, who was to carry on the business, to take over the Goodwill, Stock and Debtors at book value, the Patents at Rs. 30,000 and Plant at Rs. 5,000. He was also to pay the Creditors .
(c) C to take over shares in X Ltd. at Rs. 15 each.
(d) The shares in Ltd. to be divided in the profit-sharing ratio.
Show Ledger Accounts recording the dissolution in the books of the firm.


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