Rita and Sobha are partners in a firm, Fancy Garments Exports, sharing profits and losses equally. On 1st April, 2019, the Balance Sheet of the firm was:

Sundry Creditors75,000Cash6,000
Bills Payable30,000Bank30,000
Rita’s Loan15,000Stock75,000
Reserve      24,000Book Debts 66,000
Capital A/c :     Less: Provision for Doubtful Debts (6,000)60,000
Rita 90,000Plant and Machinery  45,000
Sobha 30,0001,20,000Land and Building48,000
  2,64,000  2,64,000

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.


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