Yogesh and Naresh were partners sharing profits equally. They dissolved the firm on 1st April, 2019. Naresh was assigned the responsibility to realise the assets and pay the liabilities at a remuneration of Rs. 10,000 including expenses. Balance Sheet of the firm as on that date was as follows:

LiabilitiesAmount ( Rs.)AssetsAmount ( Rs.)
Bills Payable40,000Investments30,000
Naresh’s Loan44,000Debtors 40,000
Yogesh’s Loan42,000Less: Provision for Doubtful Debts (4,000)36,000
Investment Fluctuation Reserve 8,000Bills Receivable33,400
Capital A/c :  Profit and Loss A/c1,10,600
Yogesh 21,000  
Naresh 21,00042,000 
 2,16,000 2,16,000

The firm was dissolved on following terms:
(a) Yogesh was to pay his wife’s loan.
(b) Debtors realised Rs. 30,000.
(c) Naresh was to take investments at an agreed value of Rs. 26,000.
(d) Creditors and Bills Payable were payable after two months but were paid immediately at a discount of 15% p.a.
(e) Bills Receivable were received allowing 5% rebate.
(f) A Debtor previously written off as Bad Debt paid Rs. 15,000.
(g) An unrecorded asset realised Rs. 10,000.
Prepare Realisation Account, Partners’ Capital Accounts, Partners’ Loan Account and Cash/Bank Account


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