The following is the Balance Sheet of Gupta and Sharma as on December 31,2017:   The firm
Channel: Doubtnut
Date: 2021-11-02

The following is the Balance Sheet of Gupta and Sharma as on December 31,2017:   The firm was dissolved on December 31, 2017 and asset realised and settlements of liabilities as follows:   (a) The realisation of the assets were as follows: Rs. Sundry Debtors 52,000 Stock 42,000 Bills receivable 16,000 Machinery 49,000   (b) Investment was taken over by  Gupta at agreed value of Rs.36,000 and agreed to pay of Mrs. Gupta’s loan.  (c) The Sundry Creditors were paid off less 3% discount.  (d) The realisation expenses incurred amounted to Rs.1,200. Journalise the entries to be made on the dissolution and prepare Realisation Account, Bank Account and Partners Capital Accounts.