Pool and Burns, who share profits and losses equally, decide to dissolve their
partnership at June 30, 2015. Their balance sheet on that date was as follows:
(Rs.) ( Rs.)
Buildings 80,000
Tools and fixtures 2,900
82,900
Debtors 8,400
Cash 600
9,000
Sundry creditors ( 4,100 )
Net current assets 4,900
Total Assets 87,800
Capital account. Pool 52,680
Burns 35,120
87,800
The debtors realized Rs. 8,200, the building Rs. 66,000 and tools and fixtures Rs. 1,800.
The expenses of dissolution were Rs. 400 and discounts totaling Rs. 300 were received
from creditors.
Required: Prepare the accounts necessary to show the results of the realization and of
the disposal of the cash.