Question

Following is the Balance Sheet of X and Y who
share profits in the ratio of 4:1 as at 31st
March 2020
Liabilities Amount Assets Amount
Sundry Creditors 8,000 Bank
20,000
Bank Overdraft 6,000 Debtors
17,000
X' Brother's Loan 8,000 Less Provision 2,000 15,000
Y's Loan
3,000 Stock
15,000
IFR
5,000 Investment
25,000
Furniture
6,000
Capital
Buildings
19,000
50,000 Goodwill
10,000
Y
40,000 Profit and Loss A/c 10,000
1,20,000
1,20,000
The firm was dissolved on the above date
and the following arrangement were decided
upon;
X agreed to pay off his brother's loan.
• Debtors of Rs. 5,000 proved bad.
• Other assets realized as follows -
Investments 20% less, Goodwill at 60%.
One of creditors of Rs.5,000 was paid only
Rs. 3,000.
• Buildings were auctioned for Rs. 30,000
and auctioneer's commission amounted to
Rs. 1,000.
• Y took over part of Stock at Rs.4,000 (
being 20% less than the book value)
Balance stock realized 50%
• Realisation expenses amounted to Rs.
2,000.
Prepare Realisation Account, Partners'
capital account and Bank Account.​

Answer 1

Explanation:

Q.}SUB TAG DISPLAYS TEXT:-

a)BELOW NORMAL LINE

b)ABOVE NORMAL LINE

c)AT THE SAME LEVEL

d)ALL OF THE ABOVE