Question

A and B share profits and losses in the ratio of 3:2. They have decided to dissolve the firm.

Assets And

External liabilities have been transferred to Realisation A/c. Pass the journal entries to

effect the following:

a) Bank Loan of `12,000 is paid off.

b) A was to bear all expenses of Realisation for which he is given a commission of `400.

c) Deferred Advertisement Expenditure A/c appeared in the books at `28,000

d) Stock worth `1,600 was taken over by at `1,200

e) An unrecorded computer realised `7,000

f) There was an outstanding bill if repairs for `2,000, which was paid off.
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Answer 1

Answers

1. Realisation Alc ---Dr. 12,000

To Bank A/c. 12,000

2. Realisation a/c - Dr. 400

To A's capital a/c. 400

3. A's capital a/c---Dr. 16,800

B's capital a/c --Dr. 11,200

To DAE A/c. 28,000

4. Mention who taken over

5. Bank a/c ---Dr. 7,000

To Realisation a/c. 7,000

6. Realisation a/c ----Dr. 2,000

To Bank a/c. 2,000

Explanation:

please don't forget narration..

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