Question

The firm of R, K and S was dissolved on 31st March, 2019. Pass necessary Journal entries
for the following after various assets (other than cash and Bank) and the third party
liabilities had been transferred to Realisation Account:
(i) K agreed to pay off his wife's loan of 6,000.
(ii) Total Creditors of the firm were * 40,000. Creditors worth 10,000 were given a piece
of furniture costing * 8,000 in full and final settlement. Remaining creditors allowed
a discount of 10%.
(iii) A machine that was not recorded in the books was taken over by Kat 3,000 whereas
its expected value was 5,000.
(iv) The firm had a debit balance of 15,000 in the Profit and Loss Account on the date of
dissolution​

Answer 1

Answer:

hey guys good afternoon

Answer 2

Journal entries in dissolution of a firm

Explanation:

Dissolving a partnership firm means discontinuing the business under the name of the said partnership firm. In this case, all liabilities are finally settled by selling off assets or transferring them to a particular partner, settling all accounts that existed with the partnership firm.  

Any profit/ loss is transferred to partners in their profit sharing ratio as agreed by them in the partnership deed.  

Dissolving a partnership firm is different from dissolving a partnership. In the former case, the firm ends its name and hence cannot do business in the future. But in case of dissolving a partnership, the existing partnership is dissolved by consent or on happening of a certain event, but the firm can retain its existence if remaining partners enter into a new partnership agreement.

Pls refer to the attached pic below