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60,000 10,000 30,000 Liabilities S.Creditors Mr. B's Loan A's Loan General Reserve Capital Accounts: A 40,000 B 30,000 Balance Sheet of A and B as on... * Assets 40,000 Machinery 10,000 Furniture 5,000 Stock 5,000 Debtors Provision for D. Debts 70,000 Cash 1,30,000 20,000 1,000 19,000 11,000 1,30,000 follows: Solution Dr. Cr. 40.000 To Realisation A/c A and B were sharing Profits and losses in the ratio of 3 : 2 . They decided to dissolve the firm on the date of the above Balance Sheet . The assets realised as Machinery 50,000 Stock * 25,000 : Debtors 18,000 . B took over Furniture att 8,000 . He also agreed to pay Mr.s B's Loan . The Sundry creditors were paid off Realisation expenses amounted to * 2,000 . Prepare Cash Account , Realisation at a discount of 5 % . During the course of realisation it was found that a bill for $ 5,000 previously discounted by the firm was dishonoured and had to be paid . Account and Capital Account of Partners to close the books of the firm