Abhay, Bikram, and Chris were partners in a firm sharing profits and losses equally. They decided to dissolve their partnership firm on 31st March, 2023. The firm’s Balance Sheet on the date of dissolution was as follows:
\[
\begin{array}{|c|c|c|c|}
\hline
\textbf{Liabilities} & \textbf{Amount (₹)} & \textbf{Assets} & \textbf{Amount (₹)} \\
\hline
\text{Capital:} & & \text{Plant and Machinery} & 80,000 \\
\text{Abhay} & 68,000 & \text{Furniture} & 45,000 \\
\text{Bikram} & 1,00,000 & \text{Motor Car} & 1,25,000 \\
\text{Chris} & 77,000 & \text{Stock} & 30,000 \\
\text{Creditors} & 1,20,000 & \text{Debtors} & 70,000 \\
& & \text{Cash at Bank} & 15,000 \\
\hline
\textbf{Total} & 3,65,000 & \textbf{Total} & 3,65,000 \\
\hline
\end{array}
\]
Adjustments:
- Plant and Machinery was taken over by Abhay at an agreed valuation of ₹ 75,000.
- Furniture realised ₹ 40,000.
- Motor Car was taken over by Bikram for ₹ 1,30,000.
- Debtors realised 10% less than their book value.
- 10% of the stock was taken over by Chris for ₹ 4,500. The remaining stock was sold for ₹ 30,000.
- Realisation expenses amounted to ₹ 5,000.