Question

Pass journal entries for the following transactions of firm in the case of firm’s dissolution: (i) Income tax liability is now payable ` 15,000 it is not recorded in the book. (ii) A partner has accepted to pay loan of his Smt. ` 20,000, which was given to the firm. (iii) Machine is disclosed in the book at the time of dissolution for ` 1,00,000. Book value is realized. (iv) The value of laptop is ` 35,000. One partner has taken it for ` 25,000.
​

Answer 1

Answer:

1. suspense a/c

to income tax

2. loan a/c

to firm

3. no entery

4. purchase              

to suspense a/c 10000

to cash           a/c  25 000