Question

Pass Journal entries for the following transactions in the books of X, Y and Z sharing profits in the ratio of 3:2:1 at the time of dissolution of the firm: (i)Z, a partner, agreed to pay a creditor of ₹30,000 for ₹20,000. (ii)A creditor for ₹40,000 accepted machinery valued at ₹38,000 in full settlement of his claim. (iii)There was a contingentliability of ₹37,000 in respect of bills discounted but not matured. All the discounted bills were honoured but an acceptor of a bill of ₹5,000 became insolvent and fifty paise in a rupee was received. The liability of the firm on account of this discounted and dishonored has not so far been recorded .(iv)Rahul, a partner was appointed to look after the process of dissolution for which he was allowed a remuneration of ₹18,000. Rahul agreed to take over stock worth ₹18,000 as his remuneration. The stock had already been transferred to Realisation Account. (v)Workmen Compensation Reserve was ₹60,000 and the claim for the same was 36,000. (vi)A computer previously written off fully, realized ₹3,900.

Answer 1

Explanation:

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Answer 2

Explanation:

)There was a contingentliability of ₹37,000 in respect of bills discounted but not matured. All the discounted bills were honoured but an acceptor of a bill of ₹5,000 became insolvent and fifty paise in a rupee was received. The liability of the firm on account of this discounted and dishonored has not so far been recorded