A, B and C were partners sharing profits and losses in the ratio of 3:2:1 on Mar 31, 2010 their balance sheet was as follows:
|
Liabilities |
Rs |
Assets |
Rs |
|
Sundry Creditors |
30,800 |
Cash at Bank |
7,000 |
|
Bills Payable |
27,200 |
Stock |
39,600 |
|
A”s Loan |
20,000 |
Debtors 30,000 |
|
|
General Reserve |
24,000 |
Less: Provision 2,000 |
28,000 |
|
Capital Accounts: |
Joint Life Policy |
8,000 |
|
|
A |
40,000 |
Furniture |
20,000 |
|
B |
32,000 |
Machinery |
87,400 |
|
C |
16,000 |
||
|
1,90,000 |
1,90,000 |
The firm was dissolved on Apr 1, 2010. Joint Life Policy was taken over by A at 125%. Stock realised 1/11th less. Debtors realised 90% furniture fetched 26% less while machinery was sold for 105%. In addition, one bill for Rs 10,000 under discount was dishonoured and had to be taken up by the firm. Expenses of realization amounted to Rs 3,970.
You are required to provide the necessary ledger accounts to close the books of the firm.