Rita and Sobha are partners in a firm, Fancy Garments Exports, sharing profits and losses equally. On 1st April, 2019, the Balance Sheet of the firm was:
|
Liabilities
|
Amount
|
Assets
|
Amount
|
|
Sundry Creditors
|
75,000
|
Cash
|
|
6,000
|
|
Bills Payable
|
30,000
|
Bank
|
|
30,000
|
|
Rita's Loan
|
15,000
|
Stock
|
|
75,000
|
|
Reserve
|
24,000
|
Book Debts
|
66,000
|
|
|
Capital A/cs:
|
|
Less: Provision for Doubtful Debts
|
6,000
|
60,000
|
|
Rita 90,000
|
|
|
|
|
|
Sobha 30,000
|
1,20,000
|
Plant and Machinery
|
45,000
|
|
|
|
|
Land and Building
|
48,000
|
|
2,64,000
|
|
2,64,000
|
|
|
|
|
The firm was dissolved on the date given above. The following transactions took place:
a Rita took 25% of the Stock at a discount of 20% in settlement of her loan.
b Book Debts realised 54,000; balance of the Stock was sold at a profit of 30% on cost.
c Sundry Creditors were paid out at a discount of 10%. Bills Payable were paid in full .
d Plant and Machinery realised 75,000. Land and Building 1,20,000.
e Rita took the goodwill of the firm at a value of 30,000.
f An unrecorded asset of 6,900 was handed over to an unrecorded liability of 6,000 in full settlement.
g Realisation expenses were 5,250.
Show Realisation Account, Partners' Capital Accounts and Bank Account in the books of the firm.