Gurmeet, Harminder and Jagat are in partnership sharing profits and

losses in the ratio of 5:3:2. They are trading in readymade Garments for

sports persons. They started facing problems due to change in Fashions

and therefore agreed to dissolve the firm on 31st march,2014 when their

Balance sheet stood as follows: [MARK-06]

BALANCE SHEET AS AT 31ST MARCH,2014

LIABILITIES AMT ASSETS AMT

Notes Payable

Sundry Creditors

Advance from Harinder

CURRENT ACCOUNTS:

Gurmeet : 2,400

Harinder : 1,460

Jagat : 1,740

CAPITAL:

Gurmeet : 50,000

Harinder : 30,000

Jagat : 20,000

50,800

29,200

40,000

5,600

1,00,000

Land & building

Cash

Marketable Securities

Sundry Debtors : 50,000

Less: Provision : -11,760

Stock

Equipment

80,000

30,000

20,000

38,240

34,360

23,000

2,25,600 2,25,600

They realized as follows: Land & Building = 70,000; marketable

securities = 18,000; Sundry Debtors = 47,000; Stock = 30,000;

Equipment = 22,240

Close the Books of the Firm and Prepae necessary Ledger Accounts