P, Q and R are the partners in Bosco Engineering Works sharing profits and losses at...

 

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P, Q and R are the partners in Bosco Engineering Works sharing profits and losses at 6: 3: 5. The Balance Sheet as on 31.12.2017 is given below: Liabilities Capital Accounts: 25,000 R 15,000 Current Accounts: 1,000 500 R Reserve Creditors Mortgage Loan Balance Sheet as on 31st December 2017 Amount Assets (³) Land and Building Furniture & Fixture 40,000 Debtors Stock Bank 1,500Q's Current Accounts 1,400 28,600 4,000 75,500 Amount 10,000 5,000 30,000 23,100 2,500 4,900 75,500 It was decided by the partners to dissolve the partnership on 31.12.2017. The following amount has been realized: 1,650. It was Furniture & Fixture 2,000; Land and Building 6,000; Debtors 20,000 and Stock 15,000. Creditors are agreed to forgo 25% in full settlement of their total dues. The full amount of Mortgage Loan has been paid. Realisation expenses paid for ascertained that Q had become insolvent. Q's estate had contributed only 50 paise in a rupee. You are required to prepare Realisation Account, Bank Account and Partners Capital Account following the rule given in Garner Vs. Murray. P, Q and R are the partners in Bosco Engineering Works sharing profits and losses at 6: 3: 5. The Balance Sheet as on 31.12.2017 is given below: Liabilities Capital Accounts: 25,000 R 15,000 Current Accounts: 1,000 500 R Reserve Creditors Mortgage Loan Balance Sheet as on 31st December 2017 Amount Assets (³) Land and Building Furniture & Fixture 40,000 Debtors Stock Bank 1,500Q's Current Accounts 1,400 28,600 4,000 75,500 Amount 10,000 5,000 30,000 23,100 2,500 4,900 75,500 It was decided by the partners to dissolve the partnership on 31.12.2017. The following amount has been realized: 1,650. It was Furniture & Fixture 2,000; Land and Building 6,000; Debtors 20,000 and Stock 15,000. Creditors are agreed to forgo 25% in full settlement of their total dues. The full amount of Mortgage Loan has been paid. Realisation expenses paid for ascertained that Q had become insolvent. Q's estate had contributed only 50 paise in a rupee. You are required to prepare Realisation Account, Bank Account and Partners Capital Account following the rule given in Garner Vs. Murray.

Answer rating: 100% (QA)

87 Particulars To Land Building To Furniture Fint To Debtors To stock To Cashi Credito... View the full answer