Pass necessary journal entries for the following transactions on the aissoof the firm of T and P after the various assets (other than cash) and outside issues have been transferred to realisation account. ()Bank loan Rs 34,000 was paid Furniture worth Rs 70,000 was taken over by partner Tat Rs 43,000 (iii) * F Partner P agreed to pay a creditor Rs 7.500. (iv) A computer previously written-off fully, realised Rs 3.900. (V)Expenses on realisation Rs 3,200 were paid by partner T. Profit on realisation R<4 800 was distributed between T and P in 5/3 ratio
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Answer:
Pass necessary Journal entries for the following transaction on the dissolution of the firm of P and Q after the various assets (other than cash) and outside liabilities have been transferred to realisation Account
(a) Bank loan worth Rs. 12,000 was paid.
(b) Stock worth Rs. 16,000 was taken over by partner Q.
(c) Partner P paid a creditor Rs. 4,000.
(d) An asset not appearing in the books of accounts realised Rs. 1,200.
(e) Expenses of realisation Rs. 2,000 were paid by partner Q.
(f) Profit on realisation Rs. 36,000 was distributed between P and Q in Rs. 5:4 ratio.(a) Realisation A/c Dr. 12000
To Bank loan A/c 12000
(Being bank liability paid)
(b) Q's Capital A/c Dr. 16000
To Realisation A/c 16000
(Being stock taken over by Q)
(c) Realisation A/c Dr. 4000
To P's Capital A/c 4000
(Being creditor paid off by P)
(d) Bank A/c Dr. 1200
To Realisation A/c 1200
(Being realisation of unrecorded asset)
(e) Realisation A/c Dr. 2000
To Q's Capital A/c 2000
(Being expenses paid by Q)
(f) Realisation A/c Dr. 36000
To P's Capital A/c 20000
To Q's Capital A/c 16000
(Being profit on realisation distributed among the partners in the ratio of 5:4)