Arnab, Ragini and Dhrupad partners in a firm sharing profits and losses in the ratio 3:1:1. On 31st March 2015, they dissolve their firm. On that date their B/S was as follows:
|Arnab’s Brother’s Loan||95000||Investments||250000|
|Investment Fluctuation Fund||50000||Sundry Debtors 170000||30000|
|Capital A - 275000||Less: Provision for Doubtful Debts 20000||150000|
|B - 200000||Bank||50000|
|C- 170000||645000||Profit and Loss Account||50000|
The assets were realised and the liabilities were paid as under:
(i) Arnab agreed to pay his brother's loan.
(ii) Investments realised 20% less.
(iii) Creditors were paid at 10% less.
(iv) Building was auctioned for Rs.. 3,55,000 Commission on auction was 5,000/ -.
(V) 50% of the stock was taken over by Ragini at market price which was 20% less than
book value and the remaining was sold at market price.
(vi) Dissolution expenses were Rs.. 8,000. Rs. 3,000 were to be borne by the firm and the balance
by Dhrupad. The expenses were paid by him.
Realisation Account, Bank Account and Partners' Capital Accounts.