| Liabilities | Rs. | Assets | Rs. |
| Capital A/c : | Building | 45,000 | |
| Bale 50,000 | Machinery | 15,000 | |
| Yale 40,000 | 90,000 | Furniture | 12,000 |
| General Reserve | 8,000 | Debtor Rs. | 8,000 |
| Bale’s Loan A/c | 3,000 | Stock | 24,000 |
| Creditors | 14,000 | Bank | 11,000 |
| 1,15,000 | 1,15,000 |
(a) The assets realised were:
Stock Rs. 22,000; Debtor Rs. 7,500; Machinery Rs. 16,000; Building Rs. 35,000.
(b) Yale took over the Furniture at Rs. 9,000.
(c) Bale agreed to accept Rs. 2,500 in full settlement of his Loan Account.
(d) Dissolution Expenses amounted to Rs. 2,500.
Prepare the:
(i) Realisation Account; (ii) Capital Accounts of Partners;
(iii) Bale’s Loan Account; (iv) Bank Account.
Solution
