Question

a and b were partners in a firm sharing profits and losses equally. their firm was dissolved on 15 the march 2018 which resulted in loss of rs. 30000.on that date the capital account of A showed a credit balance of rs. 20000 and that of B showed a credit balance of rs. 30000. the cash account had a balance of rs. 20000.you are required to pass the necessary journal entries for transfer of loss to the capital accounts and making final payment to the partners. ​

Answer 1

Answer:

a) A's capital A/c                   Dr.                      15,000

   B's capital A/c                    Dr.                     15,000

          To Realisation A/c                                                 30,000

   [Being loss on realisation transferred]

b) A's capital A/c                    Dr.                      5,000

   B's capital A/c                     Dr.                      15,000

          To Cash A/c                                                           20,000

   [Being final payment made to partners]

Explanation:

a) The profit sharing ration is equal, so the ratio is 1:1.

   A = ₹30,000 x 1/2 = ₹15,000

   B = ₹30,000 x 1/2 = ₹15,000

b) A's capital A/c balance is ₹20,000 (Cr.)

   So, Final Payment = Balance - Loss

   = ₹20,000 - ₹15,000 = ₹5,000/-

   B's capital A/c balance is ₹30,000 (Cr.)

   So, Final Payment = Balance - Loss

   = ₹30,000 - ₹15,000 = ₹15,000/-