S & Y are partners with profit sharing ratio as 2:1. The position of the firm 31st December 2004 when they decided to dissolve the business was as follows:
|Sundry Creditor||1,50,000||Plant & Machinery||2,50,000|
|Y quad2,20,000||4,40,000||Cash at bank||1,00,000|
The details or realization was as follows:
1. S took over plant & machinery and furniture at book value less 10%
2. Y took over the stock at Rs. 1,75,000
3. Debtors realized Rs. 1,85,000
4. Sundry creditors were settled at a discount of 5%
Required: Prepare necessary journal entries and ledger accounts to close the books of the firm.
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