Q 15. X and Y were partners in a firm sharing profits in the ratio of 3:2. The firm was
dissolved on 315 March 2020. After the transfer of assets and liabilities to the Realization
A/c, the following information was provided. Pass journal entries to record below
transactions.
Furniture of Rs. 50,000 was sold for 45,000 and commission of Rs. 1000 was
paid for it.
Out of stock of Rs. 40,000, Y took over half of the stock at a discount of 10%
while the remaining stock was sold for Rs. 25,000.
Realization expenses Rs. 2,000 were paid by X
A bills receivable of Rs. 5,000 under discount was dishonoured and the bill
has to be met by the firm.
Y agreed to take over creditors of Rs. 20,000 at a discount of 5 %.
An unrecorded computer was sold for Rs. 5,000.
(6)
(iv)
(vi)
3
Answers
ANSWER
(i) Profit and Loss Adjustment a/c
Dr. Cr.
Particulars Amount Particulars Amount
To Manager's
Commission
(30000*5%) 1500 By Profit and loss a/c
(after Y's salary) 24000
To Profit transferred to
Profit and loss appropriation a/c 28500 By Y's salary 6000
30000 30000
(ii) Profit and Loss Appropriation a/c
( for the year ended 31st March, 2018)
Dr. Cr.
Particulars Amount Particulars Amount
To Salary to Y 6000 By Profit and Loss Adjustment a/c 28500
To Interest on Capital:
- X's Capital a/c
- Y's Capital a/c
4000
3000
To Profit transferred to:
- X's Capital a/c
- Y's Capital a/c
9300
6200
28500 28500