Question

A, B and C are three partners sharing profits in the ratio 3:1:1. On 31st March 2016, they
decided to dissolve their firm. On that date their balance sheet was as under:-
Liabilities
₹
Assets
₹
Creditors
6,000
Cash
3,200
Loan
1,500
Debtors
24,200
Capital A/cs:
Less: Pro. Bad Debt
A
27,500
1.200
23,000
B
10,000
Stock in trade
7,800
C
7,000 44,500
Furniture
1,000
Sundry Assets
17,000
52,000
52,000
It is agreed that:-
(i) A is to take over Furniture at 3800 and Debtors amounting to 320,000 at 17,200; the
Creditors of 16,000 to be paid by him at this figure.
B is to take over all the Stock in Trade at 37,000 and some of the Sundry Assets at
37,200(being 10% less than book value).
(iii) C is to take over the remaining Sundry Assets of 90% of the book value, less 100 as
discount and assume the responsibility for the discharge of the loan together with
accrued interest of 30 which has not been recorded in the books.
The expenses of dissolution were *270. The remaining debtors were sold to a debt
collecting for 50% of the book value.
Prepare necessary accounts to close the books of the firm.
(ivt​

Answer 1

Answer:

The expenses of dissolution were *270. The remaining debtors were sold to a debt

collecting for 50% of the book value.

Prepare necessary accounts to close the books of the firm