|Reserve||24,000||Book Debts 66,000|
|Capital A/c :||Less: Provision for Doubtful Debts (6,000)||60,000|
|Rita 90,000||Plant and Machinery||45,000|
|Sobha 30,000||1,20,000||Land and Building||48,000|
The firm was dissolved on the date given above. The following transactions took place:
(a) Rita took 25% of the Stock at a discount of 20% in settlement of her loan.
(b) Book Debts realised Rs. 54,000; balance of the Stock was sold at a profit of 30% on cost.
(c) Sundry Creditors were paid out at a discount of 10%. Bills Payable were paid in full .
(d) Plant and Machinery realised Rs. 75,000. Land and Building Rs. 1,20,000.
(e) Rita took the goodwill of the firm at a value of Rs. 30,000.
(f) An unrecorded asset of Rs. 6,900 was handed over to an unrecorded liability of Rs. 6,000 in full settlement.
(g) Realisation expenses were Rs. 5,250.
Show Realisation Account, Partners’ Capital Accounts and Bank Account in the books of the firm.