A B and C were in partnership sharing profits and losses in the ratio of 2 1 1 They decided to disso......

A, B and C were in partnership sharing profits and losses in the ratio of 2 : 1 : 1. They decided to dissolve the partnership. On that date of dissolution, Sundry Assets (including cash 5,000) amounted to 88,000, assets realised 80,000 including an unrecorded asset which realised 4,000. A contingent liability on account of bills discounted 8,000 was paid by the firm. The Capital Accounts of A, B and C showed a balance of 20,000 each.

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

By: Aman