**Dissolution of Partnership - Class 12, Accountancy**

**Introduction**
Dissolution of Partnership refers to the process of ending a partnership firm. It involves settling the accounts, distributing the assets and liabilities among partners, and closing the firm's operations. In this case, Anil and Sunil are partners in a firm, and we will analyze their balance sheet as on 31.03.2018 to understand the dissolution process.

**Balance Sheet Analysis**
The balance sheet provides a snapshot of a firm's financial position at a given point in time. Anil and Sunil's balance sheet as of 31.03.2018 will be used to determine the assets, liabilities, and capital to be distributed during the dissolution process. The balance sheet typically consists of two sides - the left side represents assets, and the right side represents liabilities and capital.

**Assets**
Assets are the resources owned by a firm. They can be classified into current assets and fixed assets. Current assets include cash, accounts receivable, inventory, etc., while fixed assets include land, buildings, machinery, etc. Anil and Sunil's balance sheet should provide a detailed list of their assets and their respective values.

**Liabilities**
Liabilities refer to the firm's obligations or debts. They can be categorized into current liabilities and long-term liabilities. Current liabilities include accounts payable, short-term loans, etc., while long-term liabilities include long-term loans, mortgages, etc. Anil and Sunil's balance sheet should outline their liabilities and their associated amounts.

**Capital**
Capital represents the owners' investment in the firm. It is the difference between total assets and total liabilities. Anil and Sunil's balance sheet should specify the capital contributed by each partner.

**Dissolution Process**
The dissolution of a partnership involves several steps, including the realization, payment of liabilities, realization of assets, and distribution of remaining capital. The steps are as follows:

1. Realization: The assets are sold and converted into cash.
2. Payment of Liabilities: The firm's liabilities are paid off using the cash obtained from the realization process.
3. Realization of Assets: The remaining assets, if any, are sold, and the cash is obtained.
4. Distribution of Capital: The remaining cash is used to settle the partners' capital accounts. Any remaining cash is distributed among the partners based on their profit-sharing ratio.

**Conclusion**
Dissolution of Partnership is the process of ending a partnership firm. Anil and Sunil's balance sheet as on 31.03.2018 provides the necessary information to carry out the dissolution process. By analyzing their assets, liabilities, and capital, the firm's accounts can be settled, and the remaining assets can be distributed among the partners.

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