25 : Mike and Ajay are partners sharing profits and losses in the ratio of the capitals. They decided to dissolve their firm on 31st March 2025, the date on which the balance sheet stood as under :
Following additional information is given :
Sundry Assets realised Rs 14,00,000 and the Liabilities were discharged as follows :
(a) Creditors due on 31st May 2025, were paid at a discount of 3% per annum.
(b) Bills Payable were discharged at a rebate of Rs 1,000.
(c) Workmen Compensation Claim of Rs 40,000 was met.
(d) Expenses of Dissolution amounting to Rs 30,000 were paid.
You are required to prepare :
(i) Realisation account
(ii) Partner’s capital Accounts
Solution :-
