A and B were partners from 1st April , 2016 with capitals of ₹ 60,000 and ₹ 40,000 respectively . They shared profits in the ratio of `3 : 2` . They carried on business for two years . In the first year ended 31st March 2017 , they earned a profit of ₹ 50,000 but in the second year ended 31st March , 2018 , a loss of ₹ 20 , 000 was incurred . As the business was no longer profitable , they dissolved the firm on 31st March , 2018 . Creditors on that date were ₹ 20,000 . The partners withdrew for personal use ₹ 8,000 per partner per year . The assets realised ₹ 1,00,000 . The expenses of realisation were ₹ 3,000 .
Prepare Realisation Account , Partner's Capital Accounts and Cash Account.

Explanation

Working Notes :
1. In this problem , Balance Sheet of the firm as at the date of dissolution is not given . Therefore , it is necessary to prepare the Balance Sheet as at that date . For that , we have to prepare Partners' Capital Accounts for the year ended 31st March , 2017 and 2018 to arrive at the balance of partner's capitals as at 31st March , 2018.