Question

Rekha and chethana sharing profits as 3:1and they agree upon dissolution the balance sheet as on 31st March 2018 is as under

Answer 1

a) Rekha took over plant and Machinery at an agreed value of Rs.12,000

b) Stock and furniture were sold for Rs.8,400 and Rs.2,780 respectively

c) Debtors were took over by Chetana at Rs.13,000

d) Liabilities were paid in full by the firm

e) Realisation expenses were Rs.320.

Prepare :

1) Realisation account

2) Partners capital accounts and

3) Bank account.