Question

. Pass necessary journal entries for the following transaction, at the time of dissolution of the firm. 1) Realisation expenses rupees 3000 paid.
2) Y, one of the partners, took over a machine for Rs.20,000.
3) Profit and loss account balance of rupees 50,000 appeared on the Assets side of the balance sheet. (3)​

Answer 1

Answer:

JE

Explanation:

1. Realisation A/C Dr.       To cash A/c   rs.3,000 (being realisation expenses paid)
2. Y's Capital    A/C Dr.     To realisation a/c    rs. 20,000 (being machinery taken over by a partner)
3. Sorry, I don't know

Answer 2

3) P/L A/c will be distributed in the given ratio in Partner's Capital A/c