Q.4P,Q,R and S had been carrying on business in partnership sharing pr

1.	Q.4P,Q,R and S had been carrying on business in partnership sharing profit and losses inthe ration of 4:3:2:1 They decided to dissolve the partnership on the basis offollowing Balance Sheet as on 30th April 2011:LiabilitiesAmount (Rs.)AssetsAmount (Rs.)Capital Account:P1.68,000Q1,08.000General ReserveCapital ReserveSundry CreditorMortgage Loan2,76,00095,00025,00036,0001,10,000Land and BuildingFurniture and FixtureStockDebtorsCash in handCapital Overdrawn :R25,000S18.0002,46,00065,0001,00,00072,50015,5005,42,00043,0005,42,000(1) The assets were realized as under:Land and Building2,30,000Furniture & Fixture42,000Stock72,000Debtors65,000(2) Expenses of dissolution amounted to Rs.7,800(3) Further creditors of Rs.18,000 and had to be met(4) R became insolvent and nothing was realized from his private estate.Applying the principles laid down in Garners vs. Murray, prepare the RealisationAccount, Partner's Capital Account and Cash Account.
Answer» ANSWER: FIRST MAKE the POINT to 1000

Q.4P,Q,R and S had been carrying on business in partnership sharing profit and losses inthe ration of 4:3:2:1 They decided to dissolve the partnership on the basis offollowing Balance Sheet as on 30th April 2011:LiabilitiesAmount (Rs.)AssetsAmount (Rs.)Capital Account:P1.68,000Q1,08.000General ReserveCapital ReserveSundry CreditorMortgage Loan2,76,00095,00025,00036,0001,10,000Land and BuildingFurniture and FixtureStockDebtorsCash in handCapital Overdrawn :R25,000S18.0002,46,00065,0001,00,00072,50015,5005,42,00043,0005,42,000(1) The assets were realized as under:Land and Building2,30,000Furniture & Fixture42,000Stock72,000Debtors65,000(2) Expenses of dissolution amounted to Rs.7,800(3) Further creditors of Rs.18,000 and had to be met(4) R became insolvent and nothing was realized from his private estate.Applying the principles laid down in Garners vs. Murray, prepare the RealisationAccount, Partner's Capital Account and Cash Account.

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