31 :- A, B and C were equal partners. On 31st March,2025, their Balance sheet stood as :
The firm was dissolved on the above date on the following terms:
(a) For the purpose of dissolution, Investments were valued at Rs 18,000 and A took over the investments at this value.
(b) Fixed assets realised Rs 29,700 whereas Stock and Debtors realised Rs 80,000.
(c) Expenses of realisation paid were Rs 1,300.
(d) Creditors allowed discount of Rs 800.
(e) A post-dated cheque for Rs 1,500 under discount was dishonoured as the acceptor had become insolvent and was unable to pay and hence the firm paid the bank.
Prepare realisation account, Partner’s capital accounts and cash account showing how the accounts would finally be settled among the partners.
Solution :-
