Anju, Manju and Sanju were partners in a firm sharing profits in the ratio of 2 : 2 : 1. On 31st March, 2019, their Balance Sheet was:
|
|
Liabilities |
Amount
(₹) |
Assets |
Amount
(₹) |
Creditors |
50,000 |
Cash |
60,000 |
Bank Loan |
35,000 |
Debtors |
75,000 |
Employees' Provident Fund |
15,000 |
Stock |
40,000 |
Investments Fluctuation Reserve |
10,000 |
Investments |
20,000 |
Commission Received in Advance |
8,000 |
Plant |
50,000 |
Capital A/cs: |
|
Profit and Loss A/c |
3,000 |
Anju |
50,000 |
|
|
|
Manju |
50,000 |
|
|
|
Sanju
|
30,000 |
1,30,000 |
|
|
|
2,48,000 |
|
2,48,000 |
|
|
|
|
On this date, the firm was dissolved. Anju was appointed to realise the assets. Anju was to receive 5% commission on the sale of assets (except cash) and was to bear all expenses of realisation.
Anju realised the assets as follows: Debtors ₹ 60,000; Stock ₹ 35,500; Investments ₹ 16,000; Plant 90% of the book value. Expenses of Realisation amounted to ₹ 7,500. Commission received in advance was returned to customers after deducting ₹ 3,000.
Firm had to pay ₹ 8,500 for Outstanding Salary, not provided for earlier, Compensation paid to employees amounted to ₹ 17,000. This liability was not provided for in the above Balance Sheet. ₹ 20,000 had to be paid for Employees' Provident Fund.
Prepare Realisation Account, Capital Accounts of Partners and Cash Account.