P,Q and R share profits in proportion of ½, ¼ and 1/4 . On the date of dissolution their Balance sheet was as follows. Liabilities Rs Assets Rs Creditors 14,000 Sundry assets 40,000 P’s capital 10,000 Q’s capital 10,000 R’s capital 6,000 40,000 40,000 The assets realized Rs. 35,500. Creditors were paid in full. Realization expenses amounted to Rs.15,000. Close the books of the firm.
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Answer:
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Explanation:
The partners dissolved the business. Assets realised Stock – Rs. 23,400; Debtors 50%; Fixed Assets 10% less than their book value. Bills Payable were settled for Rs. 32,000. There was an Outstanding Bill of Electricity Rs. 800 which was paid off. Realisation expenses Rs. 1,250 were also paid. Prepare Realisation Account, Partner’s Capital Accounts and Bank Account.Read more on Sarthaks.com - https://www.sarthaks.com/470600/balance-sheet-of-p-q-and-r-as-at-31st-march-2018-who-were-sharing-profits-in-the-ratio-of-5-3-was paid. Prepare Realisation Account, Partner’s Capital Accounts and Bank Account.Read more on Sarthaks.com - https://www.sarthaks.com/470600/balance-sheet-of-p-q-and-r-as-at-31st-march-2018-who-were-sharing-profits-in-the-ratio-of-5-3-was
