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
|Profit and Loss A/c||50,000|
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.