Question 08 Chapter 7 of +2- Part

Question 08 Chapter 7 of +2-Part-1

8. (Journal Entries) What journal entries would you pass for the following transactions on the dissolution of a firm after the various assets (other than cash) and outside liabilities have been transferred to realisation account ?
(a) Bank loan Rs.12,000 is paid.
(b) Stock worth Rs.6,000 is taken by partner B.
(c) Partner A agrees to pay a creditor Rs. 3,000 due to him.
(d) An asset not appearing in the books of accounts realised Rs.700.
(e) Profit on realisation Rs. 18,000 is to be distributed between A and B in the ratio of 5:4.

The solution of Question 08 Chapter 7 of +2 Part-1: –

Journal
Date  Particulars
L.F.DebitCredit
a)Realisation A/cDr. 12,000 
 To cash A/c   12,000
 (Being repayment of bank loan)    
      
b)B’s capital A/cDr. 6,000 
 To realisation A/c   6,000
 (Being stock taken over by B )    
      
c)Realisation A/cDr. 3,000 
 To A’s capital A/c   3,000
 (Being firm’s liabilities assumed by A)    
      
d)Cash A/cDr. 700 
 To realisation A/c   700
 (Being amount realized from the sale of unrecorded asset)    
      
e)Realisation A/cDr. 18,000 
 To A’s capital A/c   10,000
 To B’s capital A/c   8,000
 (Being profit on realisation credited to partners in the ratio 5:4)    
     

Comment if you have any questions.


Also, Check out the solved question of previous Chapters: –

Usha Publication – Accountancy PSEB (Class 12) – Volume I – Solution

Usha Publication – Accountancy PSEB (Class 12) – Volume II – Solution

Check out T.S. Grewal +2 Book 2020@ Official Website of Sultan Chand Publication

2 Book 1 min - Question 08 Chapter 7 of +2 Part-1 - USHA Publication 12 Class Part - 1
Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firm

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