M, S and R were partners in a firm sharing profits and losses in the ratio of 2: 1:2. On 31.03.2022, their Balance Sheet was as follows:

Balance Sheet of M, S and R as at 31st March, 2022

Liabilities Amount
Assets Amount
Creditors 80,000 Fixed Assets 1,20,000
Capitals: Stock 70,000
M       60,000 Debtors 20,000
S       50,000 Bank 60,000
R       30,000 1,40,000
Profit and Loss A/c 50,000
2,70,000 2,70,000

On the above date the firm was dissolved. Fixed assets realised 1,20,000 and stock realised 10,000. Debtors were realised at their book value and liabilities were paid in full.

Prepare Realisation Account and Partners’ Capital Accounts.

Marks-6, CBSE:2022-23/Compartment/Q-24

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