Question

profit and loss account shows a debit balance of rs.15000. give journal entries for transferring to partners capital account at the time of dissolution of partners fime if b and c are two partners of fime
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Answer 1

Answer:

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.

Explanation:

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