A, B and C were partners in a firm sharing profits and losses in the ratio of 3 : 2 : 1. They decided to dissolve the firm when the state of affairs was as follows:

Investment was fully taken by A in full settlement of his loan. The other assets except Cash at bank realised ₹47,100. The expenses for dissolution was ₹600. A dispute with a creditor was settled reducing his claim by ₹200. C was declared insolvent and 25 p in the rupee was recovered from his estate.

Prepare Realisation Account, Bank Account and Capital Accounts of the partners to close the books of the firm. (Use Garner Vs Murray Principle).

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Sundry Creditors A's Loan Account Capital Account: A Capital Account: B Liabilities 14,500 Bank 9,000 Sundry Debtors 25,000 Stock 12.500 Investment 61,000 Furniture & Fixtures Machine Capital Account: C Assets ₹ 4,700 18,300 14,700 8.500 2,000 11,000 1,800 61,000