Question

What journal entries will be recorded for the following transactions on the dissolution of a firm: [a] Payment of unrecorded liabilities of Rs 3,200. [b] Stock worth Rs 7,500 is taken by a partner Rohit. [c] Profit on Realisation amounting to Rs 18,000 is to be distributed between the partners Ashish and Tarun in the ratio of 5:7. [d] An unrecorded asset realised Rs 5,500.

Answer 1

Hey mate!!

Entries are as follows-

a) Realisation a/c dr. 3,200

To Cash a/c 3,200

b) Rohit's cap. a/c dr. 7,500

To Realisation a/c 7,500

c) Realisation a/c dr. 18,000

To Ashish's cap. a/c 7,500

To Tarun's cap. a/c 10,500

d) Cash a/c dr. 5,500

To Realisation a/c 5,500

Hope it helps u...