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✦ FREE LEARNING — CLASS 11 & 12 — CBSE · PSEB — ACCOUNTS · ECONOMICS · BST ✦
(a) What Journal entry will be passed when an unrecorded liability of ₹15,000 is settled at ₹10,000 and paid by X, a partner, on the dissolution of a firm? (b) What Journal entry will be passed when a machine having a book value of ₹15,000 is given to Rakesh, a creditor of ₹22,000, at an agreed valuation of ₹12,000 towards partial payment of his dues?
JOURNAL
| Date | Particulars | L.F. | Dr. (₹) | Cr. (₹) |
|---|---|---|---|---|
| (a) | ||||
| Realisation A/c Dr. | 10,000 | |||
| To X’s Capital A/c | 10,000 | |||
| (Unrecorded liability of ₹15,000 settled at ₹10,000, paid by X, a partner) | ||||
| (b) | ||||
| Realisation A/c Dr. | 10,000 | |||
| To Bank A/c | 10,000 | |||
| (Remaining balance of Rakesh’s dues, ₹22,000 – ₹12,000, paid in cash; the machine transfer itself needs no separate entry as both the asset and the creditor are already in the Realisation Account) | ||||
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.3 - 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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