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: (5)

(i) Realisation expenses of Rs.2,000 were to be borne by and also paid by X, partner.

(ii) Y, a partner to bear realisation expenses agreed at Rs.1,900. Actual expenses paid by Y

were Rs. 1,500.

(iii) A creditor for Rs.30,000 accepted machinery valued at Rs.28,000 in full settlement of his

claim.

(iv) Realisation expenses of Rs.5,000 were paid by the firm on behalf of X, a Partner.

(v) Profit and Loss Account showed a debit balance of Rs.24,000.​

Answer 1

Answer:

first no entry is passed

if a partner bear the expense and same partner pays the amount then no entry is passed

third no entry is pased

X's capital account.. Dr 5000 to cash account 5000

partners capital account... Dr to realisation accounr