Question - 24

Rita, Geeta and Ashish were partners in a firm sharing profit and loss in the ratio of 3:2:1 on March 31, 2006 their balance sheet was as follows :

Liabilities                                  Amt.

Capital :

Rita               80,000

Geeta            50,000

Ashish          30,000               1,60,000

Creditor                                    65,000

Bill payable                              26,000

General Reserve                       20,000

                                               2,71,000

Assetes                                     Amt.

Cash                                        22,500

Debtor                                     25,300

Stock                                       36,000

Investment                              69,000

Plant                                        91,200

                                              2,71,000

On the above mentioned date the firm was dissolved :

  1. Rita was appoijnted to realize teh assets Rita was to receive 5% commission on the rate of assets (expect cash) and was to bear all axpenses of Realization.
  2. Assets were realized as follows: Debtors Rs. 30,000, Stock Rs. 26,000, Plant Rs. 42,750.
  3. Investment were realized at 85% of the book value.
  4. Expenses of dissolution amounted to Rs. 4,100.
  5. Firm had to pay Rs. 7,200 for outstanding salary for which no provision was mentioned.
  6. For earlier contingent liability in respect of discounted bill with the bank was paid of Rs. 9,800.
Prepare Realization account, capital accounts of partner's and cash account.

NOTE : Please purchase the book for looking question.