Reference no: EM132560111

A,B,and C were partners in a firm sharing profits and losses in the ratio 18:7:10.There Balance sheet as on 31st March ,2017 stood as below :

                                       LIABILTIES Rs.                       ASSEST Rs.

Sundry Creditors                     4,300

Stock                                   4,000

Bills Payable                             2,000

Debtors                                    5,000

A's Loan                                  4,000

Bills Receivable                          3,000

A's Capital                                  6,400

Plant and Machinery                        5,000

B's Capital                                  3,600

Cash at Bank                               2,500

Profit &Loss Account                   7,000

C's Capital A/c                              7,800

27,300                                         27,300

The firm is dissolved on the above data. The assets were realised as :

Stock Rs.3,000, Debtors Rs.4,000, Bills Receivable Rs.2,500, and Plant and Machinery Rs.4,500. Sundry creditors are paid Rs. 4,000 in full settlement and Bills Payable are paid in full. Expenses amount to Rs. 800 .C is insolvent.

Question 1: Assume the capitals are not fixed. Give realisation account, partners capital account and balance sheet to close the books only of the form according to rules given in Garner vs. Murray?