Ram, Indra, Triveni and Umesh were partners sharing profits and losses in the ratio of 3 : 3 : 2 : 2. The Balance Sheet as on 31st March, 2018 was as under:On March 31, 2018, the firm was dissolved and Indra was appointed to realise the assets and to pay off the liabilities. He was entitled to receive 5% commission on the amount finally paid to other partners as capital. He was to bear the expenses of realisation. The assets realised as follows: Debtors ₹33,000; Stock ₹24,000; Furniture ₹3,000; and Trade marks 12,000.

The creditors were paid off in full, and in addition, contingent liabilities for bills receivable discounted materialised to the extent of ₹7,500. There was also a joint life policy for ₹90,000. This was surrendered for ₹9,000. Expenses of realisation amounted to ₹1,500. Triveni was insolvent, but ₹11,100 was received from his estate. Write-up the necessary accounts to close the books of the firm according to the Garner Vs Murray rule.

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Sundry Creditors Ram's Loan Capital Accounts: Ram Indra Liabilities ₹ 46,500 Cash at bank 30,000 Sundry Debtors 60,000 Stock 45,000 1,81,500 Less: Provision for bad debts Assets Furniture & Fixtures Trade Marks Capital Accounts: Triveni Umesh 48,000 1,500 ₹ 6,000 46,500 30,000 12,000 21,000 48,000 18,000 1,81,500