Srijan Raman and Manan were partners in a firm sharing profits and losses in the ratio of 2 2 1 On 3...........

Srijan, Raman and Manan were partners in a firm sharing profits and losses in the ratio of 2 : 2 : 1. On 31st, March, 2017 their Balance Sheet was as follows:

BALANCE SHEET OF SRIJAN, RAMAN AND MANAN as on 31st March, 2017

On the above date they decided to dissolve the firm.

a Srijan was appointed to realise the assets and discharge the liabilities. Srijan was to receive 5% commission on sale of assets except cash and was to bear all expenses of realisation.

b

Assets were realised as follows:

Plant                                85,000

Stock                               33,000

Debtors                           47,000

c Investments were realised at 95% of the book value.

d The firm had to pay 7,500 for an outstanding repair bill not provided for earlier.

e A contingent liabillity in respect of bills receivable, discounted with the bank had also materialised and had to be discharged for 15,000. f Expenses of realisation amounting to 3,000 were paid by Srijan.

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