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Section - D Answer two of the following. Each question carries 1 5 marks. 4 0 . M , N and O were sharing profits

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Section-D
Answer two of the following. Each question carries 15 marks.
40.M,N and O were sharing profits and losses in the ratio 3:2:1. Their Balance Sheet as on 30th June, 2014 was as follows on which date they decided to dissolve the firm.
\table[[Liabilities,Rs,Assets,Rs],[Capitals: M,30,000,Cash in hand,3,800],[O,22,000,Cash at bank,10,000],[Depreciation reserve,2,000,Sundry debtors,22,000],[Provision for bad debts,1,000,Stock,19,000],[Werkmen's acci. Comp. fund,2,000,Fixed assets,34,000],[Benk loan secured by stock,10,000,N's Capital,3,000],[Employees provided fund,4,000,,],[Sundry creditors,20,800,,],[,91,800,,],[,,,]]
M was engaged to realise the assets and settle the liabilities for which he would get 5% of the amount realized from fixed assets as remuneration. But he had to bear all expenses on dissolution. Sundry debtors realized Rs 19,000 and fixed assets realized Rs 40,000. Sundry creditors agreed to accept the stock of the firm in full settlement of their claims.
During the course of dissolution, it was found that a bill of Rs 12,000 discounted by the firm had been dishonoured and a net liability on it had to be paid Rs 4.000.
An amount of Rs 800 had to be paid for accident compensation. The actual realization expenses amounted to Rs 1,200.
The firm had a pending case against a supplier of inferior goods for a compensation of Rs 8,000. On settlement the court awarded an amount of Rs 3000 and is received. Prepare ledger accounts on dissolution of the firm.
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