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Question 05 Chapter 7 of +2-A
5. Pass Journal entries for the following at the time of dissolution of a firm: a Sale of Assets − 50,000.
b Payment of Liabilities − 10,000.
c A commission of 5% allowed to Mr. X, a partner, on sale of assets.
d Realization expenses amounted to 15,000. The firm had agreed with Amrit, a partner, to reimburse him up to 10,000.
e Z, an old customer, whose account for 6,000 was written off as bad in the previous year, paid 60% of the amount written off.
f Investment Book Value 10, 000 realized at 150%.
| Date | Particulars |
L.F. | Debit | Credit | |
|---|---|---|---|---|---|
| a | Cash A/c | Dr. | 50,000 | ||
| To Realization A/c | 50,000 | ||||
| (Being Assets realized for cash) | |||||
| b | Realization A/c | Dr. | 10,000 | ||
| To Cash A/c | 10,000 | ||||
| (Being Payment of liabilities made) | |||||
| c | Realization A/c | Dr. | 2,500 | ||
| To X’s Capital A/c | 2,500 | ||||
| (Being Commission paid to X’s capital for sale of assets) | |||||
| Realization A/c | Dr. | 10,000 | |||
| d | Amrit’s Capital A/c | Dr. | 5,000 | ||
| To Cash A/c | 15,000 | ||||
| (Being Realization expenses paid) | |||||
| e | Cash A/c | Dr. | 3,600 | ||
| To Realization A/c | 3,600 | ||||
| (Being Payment of liabilities made) | |||||
| f | Cash A/c | Dr. | 15,000 | ||
| To Realization A/c | 15,000 | ||||
| (Being Investments are realized at 150) | |||||
T.S. Grewal’s Double Entry Book Keeping +2 (Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms)
Check out T.S. Grewal +2 Book 2020@ Official Website of Sultan Chand Publication
Accounting & Commerce Educator
Sarbjit Singh holds a B.Com and M.Com degree and has over 12 years of teaching experience in double entry bookkeeping, financial accounting, and business studies.
This guide covers "Q.No.5 | Chapter 7 – Dissolution of a Partnership Firm | T.S. Grewal 12 Class Book Keeping Part - A - Vol. 1", focusing on key definitions, step-by-step concepts, applications, and revision guidelines relevant to T.S. Grewal 12 Class Book Keeping Part - A - Vol. 1.
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