1.

The partnership between A and B was dissolved on 31st March, 2018. On that date the respective credits to the capitals were A—₹ 1,70,000 and B—₹ 30,000 . ₹ 20,000 were owed by B to the firm; ₹ 1,00,000 were owed by the firm to A and ₹ 2,00,000 were due to the Trade Creditors . Profits and losses were shared in the proportions of 2/3 to A , 1/3 to B .The assets represented by the above stated net liabilities realise ₹ 4,50,000 exclusive of ₹ 20,000 owed by B . The liabilities were settled at book figures . Prepare Realisation Account , Partners' Capital Accounts and Cash Account showing the distribution to the partners .

Answer» The partnership between A and B was dissolved on 31st March, 2018. On that date the respective credits to the capitals were A₹ 1,70,000 and B₹ 30,000 . ₹ 20,000 were owed by B to the firm; ₹ 1,00,000 were owed by the firm to A and ₹ 2,00,000 were due to the Trade Creditors . Profits and losses were shared in the proportions of 2/3 to A , 1/3 to B .

The assets represented by the above stated net liabilities realise ₹ 4,50,000 exclusive of ₹ 20,000 owed by B . The liabilities were settled at book figures . Prepare Realisation Account , Partners' Capital Accounts and Cash Account showing the distribution to the partners .


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