Q. 2 Asha, Usha and Nisha were partners sharing profits and losses in the ratio of 2:2:1. The
following is the Balance sheet as on 31st March 2019. 08
Balance Sheet as on 31st March, 2019
Liabilities Amt. Amt. Assets Amt. Amt.
Capital A/c
Asha
Usha
Nisha
General reserve
Creditors
Asha’s Loan A/c
Bills Payable
1,20,000
40,000
40,000 2,00,000
12,000
80,000
16,000
28,000
Machinery
Investment
Debtors
Less: R.D.D.
Stock
Profit & Loss A/c
Bank
1,10,000
6,000
1,00,000
48,000
1,04,000
40,000
36,000
8,000
3,36,000 3,36,000
On the above date the partners decided to dissolve the firm.
1) Assets were realized as under Machinery Rs. 90,000, Stock Rs. 36,000, Investment Rs. 42,000
and Debtors Rs. 90,000.
2) Dissolution expenses were Rs. 6,000.
3) Goodwill of the firm realized Rs. 48,000.
Pass Journal Entries in the books of the firm.
Answers
Answer:
assets : machinery 90000
stock 36000
investment 42000
Debtors 90000
Goodwill 48000
bank a/c 306000
Explanation:
JOURNAL ENTRIES
1. Realisation a/c (dr) 320000
To machinery a/c 110000
To investments a/c 6000
To debtors a/c 100000
To stocks a/c 104000
(being the sundry assets transferred to realisation a/c)
2. Creditors a/c (dr) 80000
bills payable a/c(dr) 28000
R.D.D a/c (dr) 48000
To realisation a/c 156000
(being sundry liabilities transferred to realisation a/c)
3.General reserve a/c (dr) 12000
To Asha a/c 4800
To Usha a/c 4800
To Nisha a/c 2400
(being general reserve transferred to partner capital a/c)
4. Bank a/c (dr) 306000
To realisation a/c 306000
(being assets realised)
5. Realisation a/c (dr) 156000
To bank a/c 156000
(being liabilities paid)
6. Realisation a/c (dr) 8000
To Asha a/c 3200
To Usha a/c 3200
To Nisha a/c 1600
(being realisation profit transferred to partner capital a/c)
7. Asha's capital a/c (dr) 113600
Usha's capital a/c (dr) 33600
Nisha's capital a/c (dr) 36800
To bank a/c 184000
(being final settlement made)
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