Lal and Pal were partners in a firm sharing profits in the ratio of 3 : 7. On 1st April, 2015 their firm was dissolved. After transferring assets (other than cash and outsider’s liabilities to Realisation Account, you are given the following information :
(a) A creditor of ₹ 3,60,000 accepted machinery valued at ₹ 5,00,000 and paid to the firm ₹ 1,40,000.
(b) A second creditor for ₹ 50,000 accepted stock ₹ 45,000 in full settlement of his claim.
(c) A third creditor amounting to ₹ 90,000 accepted ₹ 45,000 in cash and investments worth ₹ 43,000 in full settlement of his claim.
(d) Loss on dissolution was ₹ 15,000.
Pass necessary journal entries for the above transactions in the books of firm assuming that all payments were made by cheque.
Answers
HEYA MATE YOUR ANSWER IS
(d) Loss on dissolution was ₹ 15,000.
Pass necessary journal entries for the above transactions in the books of firm assuming that all payments were made by cheque.
HOPE THIS HELPS
PLEASEMARK AS BRAINLIEST ❤️❤️
Answer:
As per the journal,
(A) An amount of Rs. 1,40,000 has been debited from the bank account and it has been credited to Realisation account.
This is being a creditor of Rs.3,60,000 accepted machinery valued at Rs. 5,00,000 and paid Rs. 1,40,000 to the firm.
(B) No entry.
(C) An amount of Rs. 45,000 has been debited from the realisation account and it has been credited to the Cash A/c
This is being a third creditor of Rs.90,000 accepted Rs.45,000 in cash and investments worth Rs .43,000 in full settlement of his claim.
(D) An amount of Rs. 45,00 and Rs. 10,500 has been debited from the Lal and Pal's Capital account and it has been credited to the realisation A/c.
This is being the loss on dissolution transferred to partners' capital account.
Note:
No pass for asset taken over by the creditor
