Naresh, Mahesh and
They decided to dissolve ti
is to receive 5% of amou
DISSOLUTION OF PARTNERSHIP FIRM-1
443
Vohesh and Suresh are partners in a firm sharing Profits & Losses in the ratio 4:3:3 respectively.
ided to dissolve the firm and appoint Mahesh to realise the assets and distribute the proceeds. Mahesh
ve 5% of amounts realised from stock and debtors as his remuneration.
llowing is the Balance Sheet prepared by the firm as on the date of dissolution:
Liabilities
Amount
Assets
Amount
Creditors
Capitals :
Naresh
Mahesh
30,000
20,000
59,000 Cash
Debtors
Stock
50,000 Capital A/c of Suresh
1,09,000
1,500
43,000
60,000
4,500
1,09,000
Mahesh realised 35,000 from Debtors and 47,000 from Stock. Creditors were paid 57,500 in full settlement.
Besides outstanding expenses of 500 were also paid. Suresh brings necessary cash.
Show the Realisation Account, Partners' Capital Accounts and Cash Account.