42 :- Ramu, Laxman and Bharat started business on 1st April, 2024 with capitals of Rs 1,00,000, Rs 80,000 and Rs 60,000 respectively sharing profits and losses in the ratio of 4:3:3. For the year ending 31st March, 2025, the firm incurred loss of Rs 50,000. Each of the partners withdrew Rs 10,000 during the year.
On 1st April, 2025, the firm was dissolved. Creditors of the firm stood at Rs 24,000 on that date and cash in hand was Rs 4,000. Assets realised Rs 3,00,000 and creditors were paid Rs 23,500 in settlement of their claims.
Prepare Realisation Account and show your workings clearly.
Solution :-
