Question 4

4. Rajneesh, Suresh and Narender were partners in a rm sharing prots! losses in the ration of 5:3:2 on March 315', 2018 their balance sheet was as follows: Balance sheet 0 Ra 'neesh, S mesh and Narender as at March 31, 2018 Capitals Cash Raj neesh 1,60,000 Debtors Suresh 1,00,000 Stock Narender 60,000 Furniture Creditors Investments Bills Payable Plant Provided Fund 5.42.000 On the above mentioned date the rm was dissolved: 1. Rajneesh was appointed to realize the assets. He was to receive 5% commission on the realize value of assets (except cash) and was to bear all expenses of realization. 2. Assets were realized as follows: 2 Debtors 50,000 Stock 52,000 Plant 85,000 3. 60% of Investment were taken over by Suresh at a price 25% less than its book value. Remaining were sold at a prot of 10%. 4. Narender took over furniture at 80% of its value. 5. Expenses on realization amounted to 3 8,000. 6. Firm had to pay 2 10,200 for outstanding salary not provided earlier. 7. Contingent liability in respect of bills discounted with the bank was also materialized and paid of ? 19600. Prepare Realization Account, capital accounts of partners and cash account