P, Q and R were partners in a firm sharing profits and losses in the ratio of 5 : 3 : 2. They agreed to dissolve their partnership firm on 31st March, 2019. P was deputed to realise the assets and pay the liabilities. He was paid 1,000 as commission for his services. The financial position of the firm was:
Balance Sheet as at 31st March, 2019
|
Liabilities
|
Amount
|
Assets
|
Amount
|
|
Creditors
|
10,000
|
Stock
|
|
5,500
|
|
Bills Payable
|
3,700
|
Investments
|
|
15,000
|
|
Investments Fluctuation Reserve
|
4,500
|
Debtors
|
7,100
|
|
|
Capital A/cs:
|
|
Less: Provision for Doubtful Debtors
|
450
|
6,650
|
|
P 37,550
|
|
Cash
|
|
5,600
|
|
Q 15,000
|
52,550
|
R's Capital A/c
|
8,000
|
|
|
|
|
Plant and Machinery
|
30,000
|
|
70,750
|
|
70,750
|
|
|
|
|
P took over Investments for 12,500. Stock and Debtors realised 11,500. Plant and Machinery were sold to Q for 22,500 for cash. Unrecorded assets realised 1,500. Realisation expenses paid amounted to 900.
Prepare necessary Ledger Accounts to close the books of the firm.