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167 1,888 Partners' Capital Account Dr. Cr. Amal Bimal Amal Bimal Rs. Rs. 2006 2006 Mar. 31 Mar. 31 To Balance bit 550 By Balance blf 750 Realisation Alc Cash Alc 200 - loss 1337 1338 Deficiency Alc-transfer 587 1.688 1,337 1,337 1,888 Illustration 3 A,B, C and D sharing profits in the ratio of 4:3:2:1 decided to dissolve their partnership on 31 March 2006 when their balance sheet was as under :- Liabilities Rs. Assets Rs. Creditors 15,700 Bank 535 Employees Provident Fund 6,300 Debtors 15,850 Capital Accounts: Stock 25,200 A 40,000 Prepaid Expenses 800 B 20,000 60,000 Plant & Machinery 20,000 Patents 8,000 C's Capital Alc 3,200 D's Capital Alc 8,415 82.000 82,000 Following information is given to you: 1. One of the creditors took some of the patents whose book value was Rs. 5,000 at a valuation of Rs. 3,200. Balance of the creditors were paid at a discount of Rs. 400 2 There was a joint life policy of Rs. 20,000 (not mentioned in the balance sheet) and this was surrendered for Rs. 4,500 3 The remaining assets were realised at the following values - Debtors Rs.10,800, Stock stin- Rs.15,600; riant and Machinery Rs. 12,000; and Patents at 60% of their book-values Expenses of realisation amounted Rs. 1,500 D became insolvent and a dividend of 25 paise in a rupee was received in respect of the firms claim against his estate. Prepare necessary ledger accounts

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