029 Illustration 6 A and B were carrying on business sharing profits and losses equally. The firm's Balance Sheet as at 31.12.2011 was: Liabilities Assets Sundry Creditors 60,000 Stock 60,000 Bank overdraft 35,000 Machinery 1,50,000 Capital A/cs: Debtors 70,000 A 1,40,000 Joint Life Policy 9,000 B 1.30.000 2.70,000 Leasehold Premises 34,000 Profit & Loss Alc 26,000 Drawings Accounts: A 10,000 B 6.000 16,000 3.65,000 3,65,000 The business was carried on till 30.6.2012 The partners withdrew in equal amounts half the amount of profits made during the period of six months after charging depreciation at 10% p.a. on machinery and after writing off 5% on leasehold premises. In the half year, sundry creditors were reduced by 10,000 and bank overdraft by 15,000 On 30.6.2012, stock was valued at 75,000 and Debtors at 60,000; the Joint Life Policy had been surrendered for? 9,000 before 30.6.2012 and other items remained the same as at 31.12.2011 On 30.6.2012, the firm sold the business to a Limited Company. The value of goodwill was fixed at 1,00,000 and the rest of the assets were valued on the basis of the Balance Sheet as at 30.6.2012. The company paid the purchase consideration in Equity Shares of 10 each. You are required to prepare: (a) Balance Sheet of the firm as at 30.6.2012; (b) The Realisation Account; (c) Partners' Capital Accounts showing the final settlement between them