Question 05 Chapter 7 of +2-A
Table of Contents
5. Pass Journal entries for the following at the time of dissolution of a firm: a Sale of Assets − 50,000.
b Payment of Liabilities − 10,000.
c A commission of 5% allowed to Mr. X, a partner, on sale of assets.
d Realization expenses amounted to 15,000. The firm had agreed with Amrit, a partner, to reimburse him up to 10,000.
e Z, an old customer, whose account for 6,000 was written off as bad in the previous year, paid 60% of the amount written off.
f Investment Book Value 10, 000 realized at 150%.
The solution of Question 05 Chapter 7 of +2-A: –
| Date | Particulars |
L.F. | Debit | Credit | |
| a | Cash A/c | Dr. | 50,000 | ||
| To Realization A/c | 50,000 | ||||
| (Being Assets realized for cash) | |||||
| b | Realization A/c | Dr. | 10,000 | ||
| To Cash A/c | 10,000 | ||||
| (Being Payment of liabilities made) | |||||
| c | Realization A/c | Dr. | 2,500 | ||
| To X’s Capital A/c | 2,500 | ||||
| (Being Commission paid to X’s capital for sale of assets) | |||||
| Realization A/c | Dr. | 10,000 | |||
| d | Amrit’s Capital A/c | Dr. | 5,000 | ||
| To Cash A/c | 15,000 | ||||
| (Being Realization expenses paid) | |||||
| e | Cash A/c | Dr. | 3,600 | ||
| To Realization A/c | 3,600 | ||||
| (Being Payment of liabilities made) | |||||
| f | Cash A/c | Dr. | 15,000 | ||
| To Realization A/c | 15,000 | ||||
| (Being Investments are realized at 150) | |||||
T.S. Grewal’s Double Entry Book Keeping +2 (Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms)
- Chapter No. 1 – Financial Statement of Not-For-Profit Organisations
- Chapter No. 2 – Accounting for Partnership Firms – Fundamentals
- Chapter No. 3 – Goodwill: Nature and Valuation
- Chapter No. 4 – Change in Profit-Sharing Ratio Among the Existing Partners
- Chapter No. 5 – Admission of a Partner
- Chapter No. 6 – Retirement/Death of a Partner
- Chapter No. 7 – Dissolution of a Partnership Firm
T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)
- Chapter No. 8 – Company Accounts – Accounting for Share Capital
- Chapter No. 9 – Company Accounts – Issue of Debentures
- Chapter No. 10 – Redemption of Debentures
T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)
- Chapter No. 1 – Financial Statements of a Company
- Chapter No. 2 – Financial Statement Analysis
- Chapter No. 3 – Tools of Financial Statement Analysis – Comparative Statements and Common- Size Statements
- Chapter No. 4 – Accounting Ratios
- Chapter No. 5 – Cash Flow Statement
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