Question

Dissolution of a Partnership lum
11. A and B are equal partners in e firm. On 31-12-2018, their Balance Sheet stood as under
Balance Sheet
(As at 31-12-2018)
25% of the cr
Assets
Amt.
Liabilities
Amt.
ly at 10% p.a.
Creditors
10,000 Cash
5,000
Reserve Fund
8,000 Stock
12,000
Loan of Mrs. B
4,000 Bills Receivable
6,000
A's Loan
8,000 Debtors
16,000
Bills Payable
2,000 - Res, for Doubtful Debts 800 15,200
Capital : А 20,000
Furniture
13,800
B 16,000 36,000
Building
16,000
68,000
68,000
They decided to dissolve the firm on that date. The assets realized as under : Building
320,000, Furniture # 11,800, Debtors ? 14,400, Bills receivable 75,600, Stock? 11, 400,
Creditors were paid off at 4 per cent discount. Mrs. B's loan and Bills payable were paid in
full. Expenses on realization amounted to 3 1,200. Give journal entries for dissolution.
[Ans. Loss on Realization 3 600 & Cash paid to A * 23,700, B ? 19,700.]
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Answer 1

Answer:

journal entries for dissolution.

[Ans. Loss on Realization 3 600 & Cash paid to A * 23,700, B ? 19,700.]