X, Y and Z are partners in a firm sharing profits in the ratio of 3 : 2 : 1 respectively. The firm was dissolved on 1st March, 2013. After transferring assets (other than cash) and third party liabilities to the Realisation Account you are provided with the following information:
(a) There was a balance of ₹ 18,000 in the firm’s Profit and Loss Account.
(b) There was an unrecorded bike of ₹ 50,000 which was taken over by X.
(c) Creditors of ₹ 5,000 were paid ₹ 4,000 in full settlement of accounts.
Pass necessary journal entries for the above at the time of dissolution of firm.
Answers
HEYA MATE YOUR ANSWER IS
a) There was a balance of ₹ 18,000 in the firm’s Profit and Loss Account.
(b) There was an unrecorded bike of ₹ 50,000 which was taken over by X.
(c) Creditors of ₹ 5,000
HOPE THIS HELPS ❤️
PLEASE MARK AS BRAINLIEST ❤️❤️
FOLLOW ME
Answer:
As per the journal,
(A) An amount of Rs. 18,000 has been debited from the Profit and Loss account and it has been credited to X, Y and Z's capital A/c of Rs. 9000, Rs. 6000 and Rs. 3000 respectively.
This is being the balance in P and L A/c divided among Partners in the ratio of 3 : 2 : 1
(B) An amount of Rs. 50000 has been debited from the X's capital account and it has been credited to the Realisation A/c
This is being the unrecorded assets taken over by X.
(C) An amount of Rs. 4000 has been debited from the Realisation account and it has been credited to the Bank A/c
This is being the amount by which the creditors were paid Rs.4000 in full settlement of their claim of Rs. 5000
