Rita chowdhary and Miss Sobha are partners in a firm, Fancy Garments Exports, sharing profits and losses equally. On 1st April, 2018 the Balance Sheet of the firm was:
The firm was dissolved on the date given above. The following transactions took place:
(a) Mrs. Rita Chowdhary undertook to pay Mr.Chowdhary’* Loan and took over 50% of the Stock at a discount of 20%.
(b) Book Debts realised Rs. 54,000; balance of the Stock was sold *** at a profit of 30% on cost.
(c) Sundry Creditors were paid out at a discount of 10%. Bills Payable were paid in full.
(d) Plant and Machinery realised Rs. 75,000. Land and Building Rs. 1,20,000.
(e) Mrs. Rita Chowdhary took over the goodwill of the firm at a valuation of Rs. 30,000.
(f) An unrecorded asset of Rs. 6,900 was handed over to an unrecorded liability of Rs. 6,000 in full settlement.
(g) Realisation expenses were Rs. 5,250. Show Realisation Account, Partners Capital Accounts and Bank Account in the books of the firm.
