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X and Y were partners sharing profits and losses in the ratio of 3 : 2. They decided to dissolve the firm on 31st March, 2019. On that date, their Capitals were X − 40,000 and Y − 30,000. Creditors amounted to 24,000.
Assets were realised for 88,500. Creditors of 16,000 were taken over by X at 14,000. Remaining Creditors were paid at 7,500. The cost of realisation came to 500. Prepare necessary accounts.
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