Question

A and B are partners in the firm. What entries you should make when the firm is dissolved on the following condition
1 realisation expenses Rs 500
2 The real ideation amount of unrecorded assets showed rupees 2000 3 UPS 300 is paid to creditors

Answer 1

Answer:

Realisation A/c dr 500

To Bank A/c 500

(being d expenses of realisation incurred by the firm)

unrecorded assets A/c dr 2000

To realisation A/c 2000

Creditors A/c dr 300

To Bank/ cash A/c 300