1.
Journal Entries and Necessary Accounts
Aand B agreed to dissolve their business of Partnership on 31st March, 2016 on which date their Balance Sheet
was as follows:
Са
Creditors
Su
A's Loan
12,000 Cash
16,000 Debtors
Stock
Capitals :
А
B
2,000
10,000
40,000
28,000
8,000
88,000
Plant
40,000
20,000
60,000 Goodwill
88,000
The partners share profits and losses in the ratio of their capital. The Sundry Debtors realised 38,400, Stock
*36,000, Plant 20% less than the book value and the Goodwill 12,000. The creditors were paid-off at a discount
of 5% and the cost of dissolution accounted to 1,200. Pass the necessary journal entries and open the dissolution
account and other accounts showing the final disposal of cash balance.
Ano
1
200 on R7 2600
Cocheidt. A 34 800-
Answers
Answer:
Accountancy Chapter 6 - Dissolution Of A Partnership Firm
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Textbook Solutions
Class 12
Accountancy
Dissolution Of A Partnership Firm
Ts Grewal Vol. I (2018) Solutions for Class 12 Commerce Accountancy Chapter 6 Dissolution Of A Partnership Firm are provided here with simple step-by-step explanations. These solutions for Dissolution Of A Partnership Firm are extremely popular among Class 12 Commerce students for Accountancy Dissolution Of A Partnership Firm Solutions come handy for quickly completing your homework and preparing for exams. All questions and answers from the Ts Grewal Vol. I (2018) Book of Class 12 Commerce Accountancy Chapter 6 are provided here for you for free. You will also love the ad-free experience on Meritnation’s Ts Grewal Vol. I (2018) Solutions. All Ts Grewal Vol. I (2018) Solutions for class Class 12 Commerce Accountancy are prepared by experts and are 100% accurate.
Page No 6.51:
Question 1:
Pass Journal entries in the following cases?
(a) Expenses of realisation ₹ 1,500.
(b) Expenses of realisation ₹ 600 but paid by Mohan, a partner.
(c) Mohan, one of the partners of the firm, was asked to look into the dissolution of the firm for which he was allowed a commission of ₹ 2,000.
(d) Motor car of book value ₹ 50,000 taken over by creditors of the book value of ₹ 40,000 in full settlement.
ANSWER:
Journal
S.N.
Particulars
L.F.
Debits
Amount
Rs
Credit
Amount
Rs
(a)
Realisation A/c
Dr.
1,500
To Cash A/c
1,500
(Realisation expenses paid)
(b)
Realisation A/c
Dr.
600
To Mohan’s Capital A/c
600
(Realisation expenses paid by Mohan)
(c)
Realisation A/c
Dr.
2,000
To Mohan’s capital A/c
2,000
(Commission allowed to Mohan on dissolution of the firm)
(d)
No entry
No journal entry is passed because both motor car and creditors accounts have already been transferred to Realisation Account and nothing is recovered or paid in terms of Cash and Bank