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✦ FREE LEARNING — CLASS 11 & 12 — CBSE · PSEB — ACCOUNTS · ECONOMICS · BST ✦
Pass the necessary Journal entries for the following transactions on the dissolution of a firm, after various assets (other than cash) and outside liabilities have been transferred to the Realisation Account: (i) Realisation expenses of the firm amounting to ₹2,600 were paid by partner Aman. (ii) A creditor of ₹4,500 took over stock valued at ₹5,200 in full settlement. (iii) An unrecorded asset realised ₹3,500. (iv) Remaining creditors amounting to ₹20,000 were paid at a discount of 5%. (v) Remaining stock of ₹30,000 was taken over by Bimal, a partner, at a discount of 20%. (vi) Investments whose face value was ₹10,000 were realised at 40%. (CBSE 2023)
JOURNAL
| Date | Particulars | L.F. | Dr. (₹) | Cr. (₹) |
|---|---|---|---|---|
| (i) | ||||
| Realisation A/c Dr. | 2,600 | |||
| To Aman’s Capital A/c | 2,600 | |||
| (Realisation expenses paid by Aman) | ||||
| (ii) No entry — both stock and the creditor are already in the Realisation Account | ||||
| (iii) | ||||
| Cash/Bank A/c Dr. | 3,500 | |||
| To Realisation A/c | 3,500 | |||
| (Unrecorded asset realised) | ||||
| (iv) | ||||
| Realisation A/c Dr. | 19,000 | |||
| To Cash/Bank A/c | 19,000 | |||
| (Remaining creditors of ₹20,000 paid at a 5% discount) | ||||
| (v) | ||||
| Bimal’s Capital A/c Dr. | 24,000 | |||
| To Realisation A/c | 24,000 | |||
| (Remaining stock of ₹30,000 taken over by Bimal at a 20% discount) | ||||
| (vi) | ||||
| Cash/Bank A/c Dr. | 4,000 | |||
| To Realisation A/c | 4,000 | |||
| (Investments of face value ₹10,000 realised at 40%) | ||||
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.16 - 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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