Q.27. 16 Verma and Sharma were partners in a firm sharing profits in the ratio of 3:1. On
31.3.2011 their Balance Sheet was as follows:
- (6)
Rs
Liabilities
Capitals
Verma
Sharma
Creditors
1,20,000
80,000
Assets
Land and building
Machinery
2,00,000 Debtors
70,000 Bank
2,70,000
Rs
70,000
60,000
80,000
60,000
2,70,000
The firm was dissolved on 1.4.2011 and the assets and liabilities were settled as follows:
1. Creditors of Rs 50000 took over Land and Building in full settlement of their claim.
2. Remaining creditors were paid in cash
3. Machinery was sold at a depreciation of 30%
4. Debtors were collected at a cost of Rs 500
5. Expenses of realization were Rs 1700
Pass necessary journal entries for dissolution of the firm.
Answers
pls do it yourself then match the answer from here
Explanation:
Verma and Sharma were partners in a firm sharing profits in the ratio of 3:1. On
31.3.2011 their Balance Sheet was as follows:
- (6)
Rs
Liabilities
Capitals
Verma
Sharma
Creditors
1,20,000
80,000
Assets
Land and building
Machinery
2,00,000 Debtors
70,000 Bank
2,70,000
Rs
70,000
60,000
80,000
60,000
2,70,000
The firm was dissolved on 1.4.2011 and the assets and liabilities were settled as follows:
1. Creditors of Rs 50000 took over Land and Building in full settlement of their claim.
2. Remaining creditors were paid in cash
3. Machinery was sold at a depreciation of 30%
4. Debtors were collected at a cost of Rs 500
5. Expenses of realization were Rs 1700
Pass necessary journal entries for dissolution of the firm.
