Ashok Babu and Chetan are in partnership sharing profit in the proportion of 1 2 1 3 1 6 respectivel...........

Accountancy ( 12th) Dissolution of Partnership Firm

Ashok, Babu and Chetan are in partnership sharing profit in the proportion of 1/2, 1/3, 1/6 respectively. They dissolve the partnership of the 31st March, 2019 when the Balance Sheet of the firm as under:

Liabilities		Amount	Assets	Amount
Sundry Creditors		20,000	Bank	7,500
Bills Payable		25,500	Sundry Debtors	58,000
Babu's Loan		30,000	Stock	39,500
Capital A/cs:			Machinery	48,000
Ashok	70,000		Investments	42,000
Babu	55,000		Freehold Property	50,500
Chetan	27,000	1,52,000
Current A/cs:
Ashok	10,000
Babu	5,000
Chetan	3,000	18,000

		2,45,500		2,45,500

The Machinery was taken over by Babu for 45,000, Ashok took over the Investments for 40,000 and Freehold property took over by Chetan at 55,000. The remaining Assets realised as follows:

Sundry Debtors 56,500 and Stock 36,500. Sundry Creditors were settled at discount of 7%. A Office computer, not shown in the books of accounts realised 9,000. Realisation expenses amounted to 3,000.

Prepare Realisation Account, Partners' Capital Accounts and Bank Account.

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