Q.No.14 | Chapter 7 – Dissolution of a Partnership Firm | T.S. Grewal 12 Class Book Keeping Part - A - Vol. 1

Question 14 Chapter 7 of +2-A

14. Pass the Journal entries for the following transactions on the dissolution of the firm of P and Q after various assets other than cash and outside liabilities have been transferred to Realization Account:
a Stock 2,00,000. 'P' took over 50% of stock at a discount of 10%. Remaining stock was sold at a profit of 25% on cost.
b Debtors 2,25,000. Provision for Doubtful Debts 25,000. 20,000 of the book debts proved bad.
c Land and Building Book value 12, 50, 000 sold for 15,00,000 through a broker who charged 2% commission.
d Machinery Book value 6,00,000 was handed over to a creditor at a discount of 10%.
e Investment Bookvalue 60, 000 realised at 125%.
f Goodwill of 75,000 and prepaid fire insurance of 10,000.
g There was an old furniture in the firm which had been written off completely in the books. This was sold for 10,000.
h 'Z' an old customer whose account for 20,000 was written off as bad in the previous year, paid 60%.
i 'P' undertook to pay Mrs. P's loan of 50,000.
j Trade creditors 1,60,000. Half of the trade creditors accepted Plant and Machinery at an agreed valuation of 54,000 and cash in full settlement of their claims after allowing a discount of 16,000.
Remaining trade creditors were paid 90% in final settlement.