Salman and lmran agree to dissolve the partnership on 30^th June, 2018, their Balance Sheet was as follow: (20)

Balance Sheet

Liabilities

Rs.

Assets

Rs.

Creditors

60,000

Cash

10,000

Bank Loan Account

80,000

Debtors

50,000

Capital

Stock

200,000

Salman

200,000

Plant

140,000

Imran

100,000

Good will

40,000

44,0000

44,0000

The partners share profits and losses in proportion to their capitals. The debtors realized Rs. 42,000, Stock Rs. 180000, Plant 20% less than the book value and the goodwill Rs. 60,000. The creditors were paid off and the costs of dissolution amounted to Rs. 6,000.