Question

What Journal entries would you pass for the following transactions on the dissolution of a firmarpartners A and B :(i) Dissolution expenses amounted to 500. (ii) Unrecorded asset realised 2,500. (iii) Stock worth2,000 already transferred to Realisation Account was taken over by a partner 'A'. (iv) Creditorsalready transferred to Realisation Account, were paid 3,000. (v) Profit on Realisation 4000 is tobe distributed between partners A and B in the ratio of 3:1​

Answer 1

Explanation:

realisation a/c Dr. 500

to bank a/c 500

realisation a/c Dr 2,500

to bank a/c 2,500

A's capital a/c Dr 2,000

to realisation a/c 2,000

realisation a/c Dr 3,000

to bank a/c 3,000

realisation a/c Dr 4,000

to A a/c 3,000

to B a/ c 1,000

Answer 2

Explanation:

qno.3 (from chapter=8 dissolution of partner)