Perfect ANSWER ONLY

Problem 21: Dhan & Daver were carrying on the business as equal partners. The firm's Balance Sheet as on 31st March 2013 was as follows. Liabilities RsRs. Assets Rs. Sundry Trade Creditors 49,850 Goodwill 18,000 Loan due to Mehta 6,600 Furniture 2,000 Bank overdraft 34,550 Stock on hand (at Cost) 51,200 Capital Alcs: Trade debtors 40,000 Dhan 10,000 Less: 5% Discount 2,000 38,000 Daver 11,400 21,400 Bills receivable 3,000 Cash in hand 200 1,12,400 1,12,400 A Trade debt of RRs.20,000 proved to be wholly irrecoverable, and the firm called a meeting of its creditors. As a result of the meeting: 1. Creditors for Rs.30,000 reduced their claims by 25%; 2. Creditors whose claims amounted to Rs.19,850 accepted the stock at book value in satisfaction. 3. The Bank O.D. was paid by Mistry (a friend) as guarantor who reduced his claim against the firm in respect thereof by Rs.4,000. ance 4. The bills receivable were handed over to the loan creditors, owing to him in favour of Daver. 5. Daver's wife introduced Rs.6,000 as loan. You are required to prepare Ledger A/cs to show how the foregoing arrangements would be recorded in the books of the firm; and Reconstructed Balance Sheet of the firm. (Ans.: profit on reconstruction: Rs. 7,500; Balance of Capital accounts - Dhan: Rs. 6,250; Daver: Rs. B a . R SO T b BRA