Krishna and Arjun are partners in a firm They share profits in the ratio of 4 1 They decide to disso...........

Accountancy ( 12th) Dissolution of Partnership Firm

Krishna and Arjun are partners in a firm. They share profits in the ratio of 4 : 1. They decide to dissolve the firm on 31st March, 2019 at which date their Balance Sheet stood as:

Liabilities	Amount	Assets	Amount
Bank Loan	1,500	Trademarks Machinery Furniture Stock Debtors 9,000 Less: Provision for Bad Debts 400 Cash at Bank Advertisement Suspense	1,200
Creditors for Goods	8,000		12,000
Bills Payable	500		400
Capital A/cs:			6,000
Krishna 16,000
Arjun 6,000	22,000		8,600
			2,800
			1,000
	32,000		32,000

The realisation shows the following results:

a Goodwill was sold for 1,000.

b Debtors were realised at book value less 10%. c Trademarks realised 800.

d Machinery and Stock-in-Trade were taken by Krishna for 14,400 and 3,600 respectively. e An unrecorded asset estimated at 500 was sold for 200.

f Creditors for goods were settled at a discount of 80. The expenses on realisation were 800. Prepare Realisation Account, Partners' Capital Accounts and Bank Account.

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