the expenses of dissolution amounted to rs 400 you are required to prepare realisati 609132

P, Q and R sharing profit in the ratio of 3:1:1 decided to dissolve their firm on Mar 31, 2010, their position was as follows:

Liabilities Don't use plagiarized sources. Get Your Custom Essay on the expenses of dissolution amounted to rs 400 you are required to prepare realisati 609132 Get an essay WRITTEN FOR YOU, Plagiarism free, and by an EXPERT! Just from $10/Page Order Essay			Assets
Creditors		12,000	Cash in Bank		7,000
Loan		3,000	Debtors	48,400
Capitals			Less: Reserve	2,400	46,000
P	55,000		Stock		16,600
Q	22,000		Furniture		2,400
R	20,002	97,000	Sundry Assets		40,000
		1,12,000			1,12,000

It is agreed that:

P is to take over all the furniture at Rs 2,000 and debtors amounting to Rs 40,000 at Rs 36,000. P also agrees to pay the creditors.
Q is to take over all the stock at book value and some of the sundry assets Rs 14,400 (being book value less 10%).
R is to take over the remaining sundry assets at 90% of the book value and assume responsibility for the discharge of the loan.
The remaining debtors were taken by a debt collecting agency at 80% of the book value.
The expenses of dissolution amounted to Rs 400. You are required to prepare Realisation Account, Bank Account and Capital Accounts of the Partners.

superadmin