Hill, Stone and Rock were in partnership owning a riding school and livery stables. Profits and losses were shared : Hill three- fifths, Stone one-fifth, Rock one-fifth. No interest was charged on drawings or credited on capital. The firm provided an instructor to the equitation classes of the local agricultural college. The following was a summary of the Balances as on 31 December, 2017.On 31 December 2017, hay and fodder were valued at ₹50, motor vehicles at ₹2,000, harness, equipment and fittings at ₹200, and horses at ~ 1,400. Provision was needed for veterinary fees ₹50. With the exception of loan interest no further provisions were considered necessary.
The partnership was dissolved on 31 December 2017, on the following terms :

1. Rock was appointed instructor to the local agricultural college, and for this privilege, he paid into the partnership ₹200 which is to be divided between Hills and Stone.

2. He also took over assets at the following valuation: 

(i) six horses ₹600;

(ii) the hay and fodder ₹40;

(iii) part of the harness and equipment ₹75;

(iv) a horse box ₹800.

3. Hill took over a motor car at a valuation of ₹450.

4. Net receipts from the sale of the freehold and buildings amounted to ₹8,750.

5. The debtors realised ₹530 and the remaining assets were sold by auction, the net receipts being ₹1,765.

6. The loan, with interest accrued to date, was repaid on 1 January, 2018.

7. The creditors were paid and a contingent liability, not brought into the accounts, was settled early in January for ₹250.

8. Cups and plate, not brought into the accounts, were distributed among the partners at the following valuation :

Hill ₹20, Stone ₹10, Rock ₹60. All transactions were completed and all amounts receivable or payable by the partners were settled before the end of January 2018.

You are required to prepare :

(a) The Profit and Loss Account for the year ended 31 December 2017, excluding any profits or losses arising on dissolution; (b) The Realisation Account; (c) The Cash Account; and (d) Partners’ Capital Accounts showing the final settlement on dissolution.

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Drawings: Hill Stone Rock Freehold land and buildings Hay and fodder, balance on January 1, 2017 Hay and fodder purchased Harness equipment and fittings Horses valued on January 1, 2017 Horses purchased Motor vehicles Debtors Salaries and wages Veterinary and other fees General expenses Loan interest ₹ 1,500 1,200 Capital: Hill Stone Rock 1,000 8,000 Loan Stone 250 Interest @ 6% to June 30, 2017 1,500 Agricultural college equitation fees 250 Sundry creditors 1,600 Hire horses and riding lessons Receipts from horses at livery 100 2,500 Prize money Sale of horses 600 2,500 Bank overdraft 180 600 90 21,870 3,000 90 ₹ 6,000 4,400 1,690 3,090 150 130 2,905 870 75 60 2,500 21,870