Question - 20
Rose and Lily shared profits in the ratio of 2:3 their balance sheet on March 31, 2014 was as follows :
Liabilities Amt.
Creditors 40,000
Loan from lily 32,000
Profit and loss 50,000
Capital :
Lily 1,60,000
Rose 2,40,000
5,22,000
Assets Amt.
Cash 16,000
Debtor's 80,000
(-) B.D.R. 3,600 76,400
Stock 1,09,600
Bill Receivable 40,000
Building 2,80,000
5,22,000
Rose and Lily decided to dissolve the firm on the above date Assets (except bills receivables) realized Rs. 4,84,000 Bills receivable were taken over by Rose at Rs. 33,000 creditors agreed to take Rs. 38,000 cost of realization was Rs. 2,400 there was a motor cycle in the firm which was bought out of the firm's money was not shown in the books of the firm it was now sold for Rs. 10,000 there was a contingent liability in respect of outstanding electric bill of Rs. 5,000 show realization account, partners capital account, Loan account and cash account.
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