Bale and Yale are equal partners of a firm. They decide to dissolve their partnership on 31st March, 2019 at which date their Balance Sheet stood as:
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Liabilities
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Assets
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Capital A/cs:
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Building
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45,000
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Bale
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50,000
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Machinery
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15,000
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Yale
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40,000
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90,000
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Furniture
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12,000
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General Reserve
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8,000
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Debtors
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8,000
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Bale's Loan A/c
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3,000
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Stock
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24,000
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Creditors
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14,000
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Bank
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11,000
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1,15,000
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1,15,000
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a The assets realised were:
Stock 22,000; Debtors 7,500; Machinery 16,000; Building 35,000.
b Yale took over the Furniture at 9,000.
c Bale agreed to accept 2,500 in full settlement of his Loan Account.
d Dissolution Expenses amounted to 2,500. Prepare the:
i Realisation Account; ii Capital Accounts of Partners;
iii Bale's Loan Account; iv Bank Account.