1.

Ashok and Kishore were in partnership sharing profits in the ratio of 3 : 1. They agreed to dissolve the firm. The assets (other than cash of ₹ 2,000) of the firm realised ₹ 1,10,000. The liabilities and other particulars on that date were: Creditors ₹ 40,000 Ashok's Capital ₹ 1,00,000 Kishore's Capital ₹ 10,000 (Dr. Balance) Profit and Loss A/c ₹ 8,000 (Dr. Balance) Realisation Expenses ₹ 1,000 You are required to close the books of the firm.

Answer» Ashok and Kishore were in partnership sharing profits in the ratio of 3 : 1. They agreed to dissolve the firm. The assets (other than cash of ₹ 2,000) of the firm realised ₹ 1,10,000. The liabilities and other particulars on that date were:





























Creditors ₹ 40,000
Ashok's Capital ₹ 1,00,000
Kishore's Capital ₹ 10,000 (Dr. Balance)
Profit and Loss A/c ₹ 8,000 (Dr. Balance)
Realisation Expenses ₹ 1,000



You are required to close the books of the firm.


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