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 Rs. 12,000 is paid off.
(b) A was to bear all expenses of realisation for which he is given a
commission of Rs. 400.
(c) Deferred Advertisement Expenditure A/c appeared in the books at Rs.
28,000.
(d) Stock worth Rs. 1,600 was taken over by B at Rs. 1,200.
(e) An unrecorded computer realised Rs. 7,000.
(f) There was an outstanding bill of repairs for Rs. 2,000, which was paid off.​

Answer 1

Answer:

a. realisation account. dr 12000

To bank account. 12000

b. realisation. dr. 400

To A capital account. 400

c.A capital. dr 16800

B capital. dr 11200

To deferred revenue expenditure 28000

d.B capital account. dr 1200

Ti realisation account. 1200

e. bank account. dr 7000

To realisation. 7000

f. realisation. dr. 2000

To bank. 2000