Krishna and Arjun are partners in a firm . They share profits in the ratio of ` 4 : 1` .
Channel: Doubtnut
Date: 2020-03-29

Krishna and Arjun are partners in a firm . They share profits in the ratio of ` 4 : 1` . They decide to dissolve the firm on 31st March , 2019 at which date their Balance Sheet stood as : The realisation shows the following results : (a) Goodwill was sold for ? 1,000 . (b) Debtors were realised at book value less 10% . (c) Trademarks realised ? 800 . (d) Machinery and Stock-in-Trade were taken by Krishna for ? 14,400 and ? 3,600 respectively . (e) An unrecorded asset estimated at ? 500 was sold for ? 200 . (f) Creditors for goods were settled at a discount of ? 80 . The expenses on realisation were ?800 . Prepare Realisation Account , Partner\'s Capital Accounts and Bank Account .