Question - 10

A and B are equal partners in a firm on 31-12-2018 their Balance Sheet stood as under 

             Balance Sheet 

           (As at 31-12-2018)

Liabilities                      Amt.                      

Creditors                       10,000

Cash                               5,000      

Reserve fund                  8,000 

Stock                             12,000

Loan of Mrs.B                 4,000 

Bills Receivable               6,000    

A's Loan                           8,000        
Debtors                           16,000
Bills payable                    2,000        
Capital :     A      20,000                        

                  B    16,000    36,000 

                                        68,000    

   Assets                            Amt. 

                                          (Rs.)  

Building                          16,000

Furniture                  13,800    

 -Res. for doubtful bebt 800   15,200  

                                           68,000                                                                                        

They decided to dissolve the firm on that date the assets realized as under Building Rs. 20,000, Funiture Rs. 11,800, Debtors Rs. 14,400, Bills receivable Rs. 5,600, Stock Rs. 11,400, Creditors were paid off at 4 per cent discount Mrs. B's loan and bills payable were paid in full expenses on dissolution amounted to Rs. 1,200 Give jounral entries for dissolution.

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