A B and C were partners sharing profits in the ratio of 2 2 1 They decided to dissolve their firm on......

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Accountancy ( 12th) Dissolution of Partnership Firm Add to Study Deck

A, B and C were partners sharing profits in the ratio of 2 : 2 : 1. They decided to dissolve their firm on 31st March, 2019 when the Balance Sheet was:

Liabilities	Amount	Assets		Amount
Creditors	40,000	Cash Debtors Less: Provision for Doubtful Debts Stock Investments Furniture Machinery Land Goodwill		40,000
Bills Payable	46,000		70,000
Employees’ Provident Fund	32,000		6,000	64,000
Mrs. A’s Loan	38,000			50,000
C’s Loan	30,000			60,000
Investments Fluctuation Reserve	16,000			42,000
Capitals A/cs:				1,36,000
A 1,20,000				1,00,000
B 1,00,000				30,000
C 1,00,000	3,20,000

	5,22,000			5,22,000

Following transactions took place:

a A took over Stock at 36,000. He also took over his wife's loan. b B took over half of Debtors at 28,000.

c C took over Investments at 54,000 and half of Creditors at their book value.

d Remaining Debtors realised 60% of their book value. Furniture sold for 30,000; Machinery 82,000 and Land 1,20,000. e An unrecorded asset was sold for 22,000.

f Realisation expenses amounted to 4,000.

Prepare necessary Ledger Accounts to close the books of the firm.

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