Kamal, Vimal and Sunil were partners sharing profits and losses in the ratio of 5:3:2, respectively. Their Balance Sheet as on Mar 31, 2010 was as follows:
|
Liabilities |
Rs |
Assets |
Rs |
||
|
Sundry Creditors |
1,15,000 |
Furnitureand Fixtures |
30,000 |
||
|
General Reserves |
50,000 |
Stock |
1,30,000 |
||
|
Capital Accounts: |
Debtors |
2,00,000 |
|||
|
Kamal |
1,00,000 |
Less: Provision for Bad Debts |
10.000 |
1,90,000 |
|
|
Vimal |
80,000 |
Cash |
10,000 |
||
|
Sunil |
15,000 |
1,95,000 |
|||
|
3,60,000 |
3,60,000 |
The firm was dissolved on that date. Assets realised as follows:
Furniture and Fixtures: Rs 10,000; Stock: Rs 1,00,000; Debtors: Rs 1,20,000.
Sundry creditors to the extent of Rs 500 were paid in full. The total payment to sundry creditors was Rs 1,04,500. It was found that there was a liability of Rs 30,500 for damages which had also to be paid.
Winding up expenses amounted to Rs 10,000. Sonal became insolvent and he could pay only 20 paise in a rupee.
Prepare ledger accounts to close the books of the firm following Garner vs. Murray rule.