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✦ FREE LEARNING — CLASS 11 & 12 — CBSE · PSEB — ACCOUNTS · ECONOMICS · BST ✦
Pass the necessary Journal entries to record the following unrecorded assets and liabilities in the books of Paras and Priya (equal partners): (a) There was old furniture in the firm, completely written off in the books. This was sold for ₹3,000. (b) Ashish, an old customer whose account for ₹1,000 was written off as bad in the previous year, paid 60% of the amount. (c) Paras agreed to take over the firm’s goodwill (not recorded in the books) at a valuation of ₹30,000. (d) There was an old typewriter, completely written off from the books, estimated to realise ₹400. It was taken by Priya at the estimated price less 25%. (e) There were 100 shares of ₹10 each in Star Limited, acquired at a cost of ₹2,000, completely written off from the books. These shares are valued @ ₹6 each and divided among the partners in their profit-sharing ratio.
JOURNAL
| Date | Particulars | L.F. | Dr. (₹) | Cr. (₹) |
|---|---|---|---|---|
| (a) | ||||
| Bank A/c Dr. | 3,000 | |||
| To Realisation A/c | 3,000 | |||
| (Old, unrecorded furniture sold) | ||||
| (b) | ||||
| Bank A/c Dr. | 600 | |||
| To Realisation A/c | 600 | |||
| (Bad debts previously written off now recovered) | ||||
| (c) | ||||
| Paras’s Capital A/c Dr. | 30,000 | |||
| To Realisation A/c | 30,000 | |||
| (Unrecorded goodwill taken over by Paras) | ||||
| (d) | ||||
| Priya’s Capital A/c Dr. | 300 | |||
| To Realisation A/c | 300 | |||
| (Unrecorded typewriter taken over by Priya at 25% less than the estimated ₹400) | ||||
| (e) | ||||
| Paras’s Capital A/c Dr. | 300 | |||
| Priya’s Capital A/c Dr. | 300 | |||
| To Realisation A/c | 600 | |||
| (100 unrecorded shares valued at ₹6 each taken over and divided equally between Paras and Priya in their profit-sharing ratio) | ||||
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 "T.S. Grewal Class 12 Chapter 7 Q.13 - Dissolution of a Partnership Firm", focusing on key definitions, step-by-step concepts, applications, and revision guidelines relevant to Chapter 7 - Dissolution of a Partnership Firm.
It is primarily curated for Class 11 and Class 12 high school commerce, accounting, and economics students, as well as aspirants preparing for board exams or CA Foundation.
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