Accountancy, asked by sriharsha6902, 11 months ago

Achal and Vichal were partners in a firm sharing profits in the ratio of 3 : 5. On 31st March, 2018 their Balance Sheet was as follows:
The firm was dissolved on 1st April, 2018 and the Assets and Liabilities were settled as follows:
(a) Land and Building b realised ₹ 4,30,000.
(b) Debtors realised ₹ 2,25,000 (with interest) and ₹ 1,000 were recovered for Bad Debts written off last year.
(c) There was an Unrecorded Investment which was sold for ₹ 25,000.
(d) Vichal took over Machinery at ₹ 2,80,000 for cash.
(e) 50% of the Creditors were paid ₹ 4,000 less in full settlement and the remaining Creditors were paid full amount.
Pass necessary journal entries for dissolution of the firm.

Answers

Answered by anamkhurshid29

HEYA MATE YOUR ANSWER IS

b) Debtors realised ₹ 2,25,000 (with interest) and ₹ 1,000 were recovered for Bad Debts written off last year.

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Answered by aburaihana123

Explanation:

Realisation A/c - Rs. 9,22,000

(Being assets transferred)

Creditors A/c - Rs. 1,79,000

Employees' Provident Fund A/c - Rs. 21,000

(Being liabilities transferred)

Bank A/c - Rs. 4,30,000 - To Realisation A/c

(Being Land and Building realized)

Bank A/c (2,25,000+1,000) - Rs. 2,26,000 - To Realisation A/c

(Being debtors realized along with Bad- debts recovered)

Bank A/c - Rs. 25,000 - To Realisation A/c

(Being unrecorded investment sold)

Bank A/c - Rs. 2,80,000 - To Realisation A/c

(Being machinery took over by Vichal for Cash)

Realisation A/c - Rs. 1,96,000 - To Bank A/c (85,500+89,500+21,000)

(Being 50% creditors of Rs .89,500 were paid at a discount of Rs.4,000 and remaining 50% were settled in full and EPF)

Realisation A/c - Rs. 43000

(Being profits on realization transferred)

Achal's Capital A/c - Rs. 3,16,125

Vichal's Capital A/c - Rs. 5,26,875

(Being partners paid off)

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