Prashant and Rajesh were partners in a firm sharingprofits in the ratio of3 : 2 . In spite of repeated reminders by the authorities , they kept dumping hazardous material into a nearby river . The court ordered for the dissolution of their partnership firm on 31st March 2012 . Prashant was deputed to realisethe assets and to pay the liabilities . He was paid ₹ 1, 000 as commission for his services . The financial position of the firm on 31st March , 2012 was as follows : Following was agreed upon : (i) Prashant agreed to pay off his wife's loan. (ii) Debtors realised ₹ 24,000. (iii) Rajesh took all investments at ₹ 27,000 . (iv) Building realised ₹ 1, 52 , 000. (v) Creditors were payable after 2 months . They were paid immediately at 10 % discount . (vi) Bills Receivable were settled at a loss of ₹ 1, 400 . (vii) Realisation expenses amounted to ₹ 2,500 . Prepare Realisation Account , Partner's Capital Accounts and Cash Accounts to close the books of the firm .

Prashant and Rajesh were partners in a firm sharingprofits in the rati

1.	Prashant and Rajesh were partners in a firm sharingprofits in the ratio of3 : 2 . In spite of repeated reminders by the authorities , they kept dumping hazardous material into a nearby river . The court ordered for the dissolution of their partnership firm on 31st March 2012 . Prashant was deputed to realisethe assets and to pay the liabilities . He was paid ₹ 1, 000 as commission for his services . The financial position of the firm on 31st March , 2012 was as follows : Following was agreed upon : (i) Prashant agreed to pay off his wife's loan. (ii) Debtors realised ₹ 24,000. (iii) Rajesh took all investments at ₹ 27,000 . (iv) Building realised ₹ 1, 52 , 000. (v) Creditors were payable after 2 months . They were paid immediately at 10 % discount . (vi) Bills Receivable were settled at a loss of ₹ 1, 400 . (vii) Realisation expenses amounted to ₹ 2,500 . Prepare Realisation Account , Partner's Capital Accounts and Cash Accounts to close the books of the firm .
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