The firm of Amit and Sumit was dissolved. According to the agreement, Ravi had agreed to undertake the dissolution work for an agreed remuneration of ₹2,000 and bear all Realisation expenses. Dissolution expenses were ₹15,000 and the same were paid by firm. Pass journal entry/entries.
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Answer:
ANSWER
(a) Realisation A/C..... Dr. 12000
To Dharam's Capital A/C 12000
(Being dissolution expenses borne by Dharam)
(b) (i) Realisation A/C..... Dr. 15000
To Jay's Capital A/C 15000
(Being remuneration allowed to Jay)
(ii) Jay's Capital A/C..... Dr. 16000
To Vijay's Capital A/C 16000
(Being Vijay paid on behalf of Jay)
(c) (i) Realisation A/C..... Dr. 7000
To Deepa's A/C 7000
(Being remuneration allowed to Deepa)
(ii) Deepa's Capital A/C.... Dr. 6000
To Bank A/C 6000
(Being dissolution expenses paid by the firm on behalf of Deepa)
(d) (i) Realisation A/C..... Dr. 7500
To Dev's Capital A/C 7500
(Being commission provided to Dev for dissolution)
(ii) Dev's Capital A/C..... Dr. 7500
To Realisation A/C 7500
OR
No Entry
(e) (i) Realisation A/C..... Dr. 10000
To Jeev's Capital A/C 10000
(Being commission allowed to Jeev for dissolution)
(ii) Jeev's Capital A/C..... Dr. 12000
To Cash A/C 12000
(Being dissolution expenses paid by firm on behalf of Jeev)
(f) No Entry is to be passed since debtor pays in full settlement of his account.