X, Y and Z carrying on business as merchants and sharing profits and losses in the ratio of 2 : 2 : 1, dissolved their firm as at 31st March, 2019 on which date their Balance Sheet was as follows:
|
Liabilities
|
Amount
|
Assets
|
Amount
|
|
Sundry Creditors
|
41,500
|
Cash at Bank
|
|
22,500
|
|
Bills Payable
|
20,000
|
Stock
|
|
80,000
|
|
Bank Loan
|
40,000
|
Debtors
|
50,000
|
|
|
General Reserve
|
50,000
|
Less: Provision for Doubtful Debts
|
2,500
|
47,500
|
|
Investments Fluctuation Reserve
|
40,000
|
Investments
|
|
55,000
|
|
Capital A/cs:
|
|
Premises
|
1,51,500
|
|
X 75,000
|
|
|
|
|
Y 75,000
|
|
|
|
|
Z 15,000
|
1,65,000
|
|
|
|
|
|
|
|
|
|
3,56,500
|
|
3,56,500
|
|
|
|
|
A bill for 5,000 received from Mohan discounted from bank is not met on maturity.
The assets except Cash at Bank and Investments were sold to a company which paid 3,25,000 in cash.The Investments were sold and 56,500 were received. Mohan proved insolvent and a dividend of 50% was received from his estate. Sundry Creditors includingBillsPayable were paid 57,500 in full settlement. Realisation Expenses amounted to 15,000.
Prepare Realisation Account, Partners' Capital Accounts and Bank Account.