Question - 27

Ashok and Kishor were partners sharing profits in the ratio of 3:1. They agreed to dissolve the firm. The assets (Other than cash of Rs. 2,000) of the firm realized Rs. 1,10,000. The liabilities and other particulars on that date of the firm were as follows:

Creditors Rs. 40,000

Ashok's Capital Rs. 1,00,000

Kishor's Capital (Dr. Balance) Rs. 10,000

P & L A/c (Dr. Balance) Rs. 8,000

Realization expenses Rs. 1,000

Creditors were settled in full settlement at Rs. 38,000.

Prepare Realization account and partners capital account.

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