Question

Vasudha and Dewan were partners in a firm sharing profits and losses in the ratio 2:3. The
firm was dissolved on 31st March, 2019. After transfer of assets (other than cash) and
external liabilities to realisation account, the following transactions took place
(i) Investments of the value of 7 60,000 were sold in the open market for ? 63,000 for which a
commission of 3 700 was paid to the broker.
(ii) Creditors worth 65,000 were settled by handing over the entire stock to them along with a
payment of 23,000 by cheque.
(iii) There was old furniture which had been completely written-off from the books of the firm. It
was taken over by Vasudha at 2,000.
(iv) Dewan undertook to pay Mrs. Dewan's loan of 45,000,
(v) Dewan was appointed to look after the process of dissolution for which he was allowed a
remuneration of 3 7,000. He agreed to bear the dissolution expenses. Actual expenses
incurred by Dewan were 11,000, which were paid by the firm.
(vi) Loss on realisation amounted to 9,000.
Pass the necessary journal entries to record the above transactions in the books of the firm.
(6)​

Answer 1

Answer:

cash AC...... Dr. (MV - charges)

to realisation AC (MV - charges)

realisation AC...... Dr 23,000

to cash AC 23,000

vasudha's capital AC.... Dr 2,000

to realisation AC 2,000

realisation AC........ Dr 45,000

to dewan's capital AC 45,000

realisation AC...... Dr 7,000

to dewan's capital AC 7,000

dewan's capital AC.... Dr 11,000

to cash AC 11,000

on loss debit partners capital and credit realisation AC