A, B and C are equal partners, whose Balance Sheet on December 31, 2017 is as follows:

Due to lack of liquidity and weak financial position of the partners, the firm is dissolved. A and C are not able to contribute anything and a sum of ₹200 received from B. 

All of them are declared insolvent. The assets are realised: Stock ₹500; Plant and Machinery ₹1,000; Furniture and Fittings ₹200; Land & Buildings ₹800; and Debtors ₹550 only.

Realisation expenses amounted to ₹50. You are required to close the firm’s books.

Sundry Creditors A's Loan Capital A/cs: A C Liabilities 5,000 Cash in hand 1,000 Stock 800 500 7,300 Debtors Plant & Machinery Furniture & Fittings Land & Buildings B's Capital (overdrawn) Assets 50 800 1,000 2,000 800 2,000 650 7,300