Shilpa, Meena and Nanda decided to dissolve their partnership on 31st March, 2023. Their Profit sharing ratio was 3 : 2 : 1 and their Balance Sheet was as under:
Balance Sheet of Shilpa, Meena and Nanda as on 31st March, 2023
| Liabilities | ₹ | Assets | ₹ |
| Capital A/cs: Shilpa Meena Bank Loan Creditors Provision for Doubtful Debts General Reserve |
80,000 40,000 20,000 37,000 1,200 12,000 |
Land Stock Debtors Nanda’s Capital Cash |
81,000 56,760 18,600 23,000 10,840 |
| 1,90,200 | 1,90,200 |
It is agreed as follows:
The stock of value of ₹ 41,660 are taken over by Shilpa for ₹ 35,000 and she agreeed to pay bank loan. The remaining stock was sold at ₹ 14,000 and debtors amounting to ₹ 10,000 realised ₹ 8,000. Land is sold for ₹ 1,10,000. The remaining debtors realised 50% at their book value. Cost of realisation amounted to ₹ 1,200. There was a typewriter not recorded in the books worth of ₹ 6,000 which were taken over by one of the Creditors at this value. Prepare Realisation Account, Partner’s Capital Accounts and Cash Account to close the books of the firm.
Solution :
