Question

16 Paxs necessary Journal entries in the following cases on the dissolution of
partnership firm of partners X, Y, A and B:
) Realization expenses of 5.000 were to borne by X, a partner. However, it
was paid by Y.
(il) investments costing <25,000 (comprising 1000 shares), had been written-off
from the books completely. These shares are valued at 20 each and were
divided amongst the partners.
(all) Y's loan of 50,000 settled at < 48,000.
(iv) Machinery (book value X 6,00.000) was given to creditor at a discount of
20%.​

Answer 1

Answer:

Journal

1. X capital account. dr 5000

To Y capital account. 5000

2. 1000 shares @20 each = 20000 divided X and Y in their ratio ratio is not given we assume it equal

X capital account. dr. 10000

Y capital account. dr 10000

To realisation account. 20000

3. Y loan account. dr. 50000

To bank account. 48000

To realisation account. 2000

4. No entry