A, B, C, and D share profit and loss in the ratio of 4 : 3 : 2 : 1. The partnership was dissolved on 31st March, 2024. The firm’s balance sheet on this date was as follows:
| Liabilities | Amount (Rs.) | Assets | Amount (Rs.) |
|---|
| Creditors | 1,20,000 | Cash at Bank | 8,000 |
| Bills Payable | 20,000 | Bills Receivable | 40,000 |
| Capital A | 80,000 | Debtors | 1,40,000 |
| Capital C | 1,20,000 | Stock | 92,000 |
| | | Capital B | 40,000 |
| | | Capital D | 20,000 |
| Total | 3,40,000 | Total | 3,40,000 |
90% of Book value was realised from Debtors and Bills Receivable. Stock could be sold for ₹ 78,000. Outstanding salary of ₹ 2,000, which was not shown in the Balance Sheet, was also paid. The realisation expenses amounted to ₹ 6,000.
B is insolvent and only ₹ 32,000 could be recovered from him. The rule of Garner v/s Murray shall apply.
Prepare Realisation Account and Partners' Capital Account.