Girija and Ganesh were partners in a firm sharing, profits and losses in the ratio of 2 : 3. On 31st March, 2017 their Balance Sheet was as follows :
Cash at Bank
Girija’s Brother’s loan
Less: Provision for
doubtful debts 2,000
Investment Fluctuation Fund
Profit and Loss A/c.
On the above date the firm was dissolved. The assets were realized and the liabilities were paid off as follows:
(a) Debtors of Rs. 6,000 were proved bad.
(b) Girija agreed to pay off her brother’s Loan.
(c) One of the creditors for Rs. 10,000 was paid only Rs. 3,000 in full settlement of his account.
(d) Buildings were auctioned for Rs. 1,80,000 and the auctioneer’s commission amounted to Rs. 8,000.
(e) Ganesh took over part of stock at Rs. 4,000 (being 20% less than the book value). Balance of the Stock was handed over to the remaining creditors in full settlement of their account.
(f) Investments realized Rs. 9,000 less.
(g) Realisation expenses amounted to Rs. 17,000 and were paid by Ganesh.
Prepare Realisation Account, Partners’ Capital Accounts and Bank Account.