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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