X, Y and Z carry on business in partnership sharing profits and losses in the proportions of ½, 3/8, and 1/8, respectively. On Mar 31, 2010, they agreed to sell their business to Victory Ltd. Their position on that date was as follows:
|
Liabilities |
Rs |
Assets |
Rs |
|
Capitals |
Freehold Property |
1,44,000 |
|
|
X 1,20,000 |
Machinery |
1,26,000 |
|
|
Y 90,000 |
Book Debts |
45,000 |
|
|
Z 78.000 |
2,88,000 |
Stocks |
69,000 |
|
Loan on Mortgage |
48,000 |
Cash |
6,000 |
|
Trade Creditors |
54,000 |
||
|
3,90,000 |
3,90,000 |
Victory Ltd took the following assets at the valuation as follows:
Freehold Property 30% more; Machinery 30% less; Book Debts 90%; Stock 10% less; Goodwill Rs 38,220.
The company also agreed to pay the Trade Creditors which were agreed to allow a discount of 2%. The company paid Rs 2,01,000 in fully paid shares of Rs 10 each and the balance in cash. The expenses amounted to Rs 4,500.
You are required to prepare the necessary ledger accounts in the books of the firm.