A, B and C were partners in a firm dealing in toilet articles and share profits and losses in the
A, B and C were partners in a firm dealing in toilet articles and share profits and losses in the ratio of 4 : 3 : 3. As of December 31, 2017 they decided to dissolve the firm and B was appointed to realise the assets and distribute the profits. B was to receive 5% of the amounts realised from stock and debtors as his remuneration, he is to bear all the expenses of the realisation. The Balance Sheet as on December 31, 2017 was as under:B reported that the assets realised were: Debtors ₹4,50,000; Stock ₹3,50,000; Goodwill ₹20,000; Creditors were paid ₹5,75,000 in full settlement and other outstanding creditors were paid ₹5,000. The expenses of realisation aggregated to ₹6,000. A and B received ₹30,000 from C in full settlement of the firm’s claim on him. You are required to prepare the Realisation Account, the Bank Account and Capital Accounts of the partners.
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