Question

6. P. Q and R carrying on business as merchants and sharing profits and losses in the ratio of 2 : 2: 1. dissolved their firm as on December 31, 2014 on which date their Balance Sheet was as follows:

Liabilities

Sundry Creditors

Reserve Fund

Joint Life Policy Reserve

Capital A/cs:

P

R

₹

20,300 10,000 8,000

33,000 71,300

Assets

Cash at Bank

Stock

Debtors

Less: Provision

Joint Life Policy Premises

4,500 16,000

9,500 11,000 30,300

71,300

10,000

500

15,000 15,000

3,000

Note. There is a bill for 1,000 under discount. The bill was received from Z. The assets except cash at bank and joint life policy were sold to a company which paid 65,000 in cash. The life policy was surrendered and 11,300 were received. Z proved insolvent and a dividend of 50% was received from his estate. Sundry creditors were paid 19,500 in full settlement. Expenses amounted to 3,000. ish Account and the Partners' Capital Accounts.​

Answer 1

Answer:

profits and losses in the ratio of 2 : 2: 1. dissolved their firm as on December 31, 2014 on which date their Balance Sheet was as follows:

Liabilities

Sundry Creditors

Reserve Fund

Joint Life Policy Reserve