Question

pass necessary Journal entries for the following. transactions at the time of lissolution of the firm.

(i) Realstion Explain 3000 Paid.

ii) Realisation Explense amounted 2000 mrx, one of the partners had to there Explense.

iii) y one of the partner took over a Machine for 20000
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Answer 1

Answer:

ANSWER

(a) Partner's Loan A/c Dr. 10000

To Bank A/c 10000

(Being payment of partner's loan)

(b) X's Capital A/c Dr. 300

To Realisation A/c 300

(Being unrecorded asset taken over by partner)

(c) X's Capital A/c Dr. 10000

Y's Capital A/c Dr. 10000

Z's Capital A/c Dr. 10000

To Profit and Loss A/c 30000

(Being debit balance of profit and loss distributed among partners)

(d) Bank A/C..... Dr. 125000

To Realisation A/c 125000

(Being realisation of assets)

(e) Realisation A/c Dr. 2000

To Y's Capital A/c 2000

(Being remuneration given to Y to carry out dissolution)

(f) No entry is passed since creditors are paid in full settlement of their account