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✦ FREE LEARNING — CLASS 11 & 12 — CBSE · PSEB — ACCOUNTS · ECONOMICS · BST ✦
Pass the necessary Journal entries on the dissolution of a firm in the following cases: (a) Dharam, a partner, was appointed to look after the dissolution process at a remuneration of ₹12,000; dissolution expenses were to be borne by the firm; dissolution expenses of ₹11,000 were paid by Dharam. (b) Jay, a partner, was to be paid ₹15,000 including dissolution expenses; dissolution expenses of ₹16,000 were paid by Vijay, another partner, on behalf of Jay. (c) Deepa, a partner, was to be paid ₹7,000 including dissolution expenses; dissolution expenses of ₹6,000 were paid from the firm’s bank account. (d) De, a partner, agreed to do the work of dissolution for ₹7,500; he took stock of the same value as his remuneration, the stock having already been transferred to the Realisation Account. (e) Jeev, a partner, agreed to do the work of dissolution for ₹10,000 and to bear the dissolution expenses himself; actual dissolution expenses of ₹12,000 were paid by Jeev by drawing cash from the firm.
JOURNAL
| Date | Particulars | L.F. | Dr. (₹) | Cr. (₹) |
|---|---|---|---|---|
| (a) | ||||
| Realisation A/c Dr. | 23,000 | |||
| To Dharam’s Capital A/c | 23,000 | |||
| (Dharam’s remuneration of ₹12,000 plus the ₹11,000 of dissolution expenses he paid on the firm’s behalf, since the firm was to bear them) | ||||
| (b) | ||||
| Realisation A/c Dr. | 15,000 | |||
| To Jay’s Capital A/c | 15,000 | |||
| (Jay’s fixed, all-inclusive remuneration) | ||||
| Jay’s Capital A/c Dr. | 16,000 | |||
| To Vijay’s Capital A/c | 16,000 | |||
| (Expenses that Jay was to bear personally, paid by Vijay on his behalf) | ||||
| (c) | ||||
| Realisation A/c Dr. | 7,000 | |||
| To Deepa’s Capital A/c | 7,000 | |||
| (Deepa’s fixed, all-inclusive remuneration) | ||||
| Deepa’s Capital A/c Dr. | 6,000 | |||
| To Bank A/c | 6,000 | |||
| (Expenses that Deepa was to bear personally, paid instead from the firm’s bank account and recovered from her) | ||||
| (d) No entry — De’s remuneration of ₹7,500 and his taking over stock of the same value exactly offset each other | ||||
| (e) | ||||
| Realisation A/c Dr. | 10,000 | |||
| To Jeev’s Capital A/c | 10,000 | |||
| (Jeev’s fixed remuneration) | ||||
| Jeev’s Capital A/c Dr. | 12,000 | |||
| To Cash A/c | 12,000 | |||
| (Cash drawn by Jeev from the firm to pay expenses he had agreed to bear personally, recovered from him) | ||||
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.18 - 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.
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