Question - 18

The following is the balance sheet of Tanu and Manu, who shares profit and loss in the ratio of 5:3 on December 31, 2006.

Liabilities                                        Amt.

Sundry Creditors                              38,000

Bills payable                                    10,000

Bank loan                                            15,000

Reserve fund                                      5,000

Capital :

Tanu                1,10,000

Manu                  90,000                  2,00,000

                                                          3,60,000

Assets                                              Amt.

Cash at Bank                                      16,000

sundry debtor                                     55,000

Stock                                                  75,000

Motor car                                            90,000

Machinery                                           45,000

Invetment                                            70,000

Fixture                                                  9,000

                                                            3,60,000

On the above date the firm is dissolved and the following agreement was made Tanu agree to pay the bank loan and took away the sundry debtors sundry creditor accepts stock and paid Rs. 10,000 to the firm machinery is taken over by manu for Rs. 40,000 and agreed to pay of bills payable at a discount of 5% Motor car was taken over by Tanu Rs. 60,000 Investment realized Rs. 76,000 and fixture Rs. 4,000 the expenses of dissolution amounted to 2,200 prepare realization account, bank account and partners capital account.

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