a firm is dissolved shyam a partner is to carry out dissolution 50000 rupees is fixed as his remuneration realisation expenses were 25000 which is paid by shyam. shyam capital account will be credited by
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Pass neceisaly Journal. entries on the dissolution of a firm in the fondling cases:
(a) Dharam, a partner, was appointed to Iook after the process of dissolution at a remuneration of Rs. 12,000 and he had to bear the dissolution expenses. Dissolution expenses Rs. 11,000 were paid by Dharam.
(b) Jay, a partner, was appointed to look after the process of dissolution and was allowed a remuneration of Rs. 15,000. Jay agreed to bear dissolution expenses Rs. 16,000 were paid by Vijay another partner on behalf of Jay.
(c) Deepa, a partner, was to look after the process of dissolution and for this work she was allowed a remuneration of Rs. 7,000. deepa agreed to bear dissolution expenses. Actual dissolution expenses Rs. 6,000 were paid from the firm's bank account.
(d) Dev, a partner, agreed to do the work of dissolution for Rs. 7,500. He took away stock of the same amount as his commission. The stock had already been transferred to realisation Account.
(e) Jeev, a partner, agreed to do the work of dissolution for which he was allowed a commission of Rs. 10,000. He agreed to dissolution expenses. Actual dissolution expenses paid by Jeev were Rs. 12,000. These expenses were paid by Jeev by drawing cash from the firm.
(f) A debtor of Rs. 8,000 already transferred to Realisation Account agreed to pay the realisation expenses of Rs. 7,800 in full Settlement of his account.
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ANSWER
(a) Realisation A/C..... Dr. 12000
To Dharam's Capital A/C 12000
(Being dissolution expenses borne by Dharam)
(b) (i) Realisation A/C..... Dr. 15000
To Jay's Capital A/C 15000
(Being remuneration allowed to Jay)
(ii) Jay's Capital A/C..... Dr. 16000
To Vijay's Capital A/C 16000
(Being Vijay paid on behalf of Jay)
(c) (i) Realisation A/C..... Dr. 7000
To Deepa's A/C 7000
(Being remuneration allowed to Deepa)
(ii) Deepa's Capital A/C.... Dr. 6000
To Bank A/C 6000
(Being dissolution expenses paid by the firm on behalf of Deepa)
(d) (i) Realisation A/C..... Dr. 7500
To Dev's Capital A/C 7500
(Being commission provided to Dev for dissolution)
(ii) Dev's Capital A/C..... Dr. 7500
To Realisation A/C 7500
OR
No Entry
(e) (i) Realisation A/C..... Dr. 10000
To Jeev's Capital A/C 10000
(Being commission allowed to Jeev for dissolution)
(ii) Jeev's Capital A/C..... Dr. 12000
To Cash A/C 12000
(Being dissolution expenses paid by firm on behalf of Jeev)
(f) No Entry is to be passed since debtor pays in full settlement of his account.
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Ashwin, Bhavin and Pravin carried on business. They share profits and losses in the ratio of 5:3:2 respectively. Their Balance Sheet as on 31
st
March, 2016 was as under:
Balance Sheet as on 31
st
March, 2016
Liabilities Amount (Rs.) Assets Amount(Rs.) Sundry creditors 42,000 Plant and machinery 40,000 Bhavin's loan 10,000 Investment 16,000 Reserve fund 40,000 Stock 60,000 Capital accounts:
Debtors 36,000 Ashwin 40,000 Less: R.D.D. 2,000 34,000 Bhavin 20,000 Bank 10,000 Pravin 8,000 1,60,000 1,60,000Of the given data, the firm was dissolved, and the assets realised were as under:
(1) Investment Rs. 10,000, Stock Rs. 48,000, and Debtors Rs. 30,000
(2) Plant and machinery were taken over by Ashwin at book value.
(3) Sundry creditors and Bhavin's loan were paid in full.
(4) Realisation expenses incurred Rs. 2,000.
Prepare:
(1) Realisation Account
(2) Partner's Capital Account
(3) Bank Account