Question

. A,B,and C were partners in a firm sharing profits and losses in the ratio 18:7:10.There Balance sheet as on 31st March ,2017 stood as below : LIABILTIES Rs. ASSEST Rs. Sundry Creditors 4,300 Stock 4,000 Bills Payable 2,000 Debtors 5,000 A’s Loan 4,000 Bills Receivable 3,000 A’s Capital 6,400 Plant and Machinery 5,000 B’s Capital 3,600 Cash at Bank 2,500 Profit &Loss Account 7,000 C’s Capital A/c 7,800 27,300 27,300 The firm is dissolved on the above data. The assets were realised as : Stock Rs.3,000, Debtors Rs.4,000, Bills Receivable Rs.2,500, and Plant and Machinery Rs.4,500. Sundry creditors are paid Rs. 4,000 in full settlement and Bills Payable are paid in full. Expenses amount to Rs. 800 .C is insolvent. Assume the capitals are not fixed. Give ledger accounts to close the books of the form according to rules given in Garner vs. Murray.

Answer 1

Explanation:

Income and expenditure account for the year ended 31st March 2015 (3) and a balance sheet as at that date. Debit balance:- stock in hand = 1170 , purchase =24660 , Dining room =32370,rent = 10470 , wages =18690 , repair and renewals = 5400, fuel and light =5280, miscellaneous expenses =4050, cash in hand.