A and B are partners in a firm sharing profits and losses in the ratio of 3 : 2. On 31st March, 2019, their Balance Sheet was as follows:
BALANCE SHEET as at 31st March, 2019
|
Liabilities
|
Amount
|
Assets
|
Amount
|
|
Creditors
|
38,000
|
Cash at Bank
|
11,500
|
|
Mrs. A's Loan
|
10,000
|
Stock
|
6,000
|
|
B's Loan
|
15,000
|
Debtors
|
19,000
|
|
Reserve
|
5,000
|
Furniture
|
4,000
|
|
A's Capital 10,000
|
|
Plant
|
28,000
|
|
B's Capital 8,000
|
18,000
|
Investments
|
10,000
|
|
|
|
|
Profit and
|
7,500
|
|
|
LossA/C
|
|
|
86,000
|
|
86,000
|
|
|
|
|
The firm was dissolved on 31st March, 2019 and both the partners agreed to the following:
a A took Investments at an agreed value of 8,000. He also agreed to settle Mrs. A's Loan.
b Other assets realised as: Stock − 5,000; Debtors − 18,500; Furniture − 4,500; Plant − 25,000.
c Expenses of realisation came to 1,600.
d Creditors agreed to accept 37,000 in full settlement of their claims. Prepare Realisation Account, Partners' Capital Accounts and Bank Account.