The following is the Balance Sheet as on Mar 31, 2010 of a firm:
|
Liabilities |
Rs |
Assets |
Rs |
|
Creditors |
51,200 |
Bank Balance |
2,750 |
|
Loans: |
Debtors |
48,030 |
|
|
P |
15,000 |
Stock |
32,000 |
|
Q |
6,000 |
Machinery |
14,300 |
|
Current Accounts |
Land and Buildings |
42,000 |
|
|
P |
10,600 |
Current Accounts – R |
4,970 |
|
Q |
1,250 |
||
|
Capital Accounts |
|||
|
P |
30,000 |
||
|
Q |
20,000 |
||
|
R |
10,000 |
||
|
1,44,050 |
1,44,050 |
Capitals of the partners are fixed by the deed, profits and losses are shared equally. The business is closed due to loss. The assets, except the bank balance, realised net Rs 1,15,000. R is insolvent and realization expenses amounted to Rs 1,560. Show the final realisation and division amongst the partners. Apply Garner vs. Murray rule.