Question 15 Chapter 7 of +2-A
15. What Journal entries would be passed for discharge of following unrecorded liabilities on the dissolution of a firm of partners A and B:
a There was a contingent liability in respect of bills discounted but not matured of 18,500. An acceptor of one bill of 2,500 became insolvent and fifty paise in a rupee was recovered. The liability of the firm on account of this bill discounted and dishonored has not so far been recorded.
b There was a contingent liability in respect of a claim for damages for 75,000, such liability was settled for 50,000 and paid by the partner A.
c Firm will have to pay 10,000 as compensation to an injured employee, which was a contingent liability not accepted by the firm. d 5,000 for damages claimed by a customer has been disputed by the firm. It was settled at 70% by a compromise between the customer and the firm.
The solution of Question 15 Chapter 7 of +2-A: –
| Date | Particulars |
L.F. | Debit | Credit | |
| a | Bank A/c | Dr. | 1,250 | ||
| To Realization A/c | 1,250 | ||||
| (Being Amount received) | |||||
| Realization A/c | Dr. | 2,500 | |||
| To Bank A/c | 2,500 | ||||
| (Being Liability discharged ) | |||||
| b | Realization A/c | Dr. | 50,000 | ||
| To A’s Capital A/c | 50,000 | ||||
| (Being Liability paid by a partner) | |||||
| c | Realization A/c | Dr. | 10,000 | ||
| To Bank A/c | 10,000 | ||||
| ( Being Liability discharged) | |||||
| d | Realization A/c | Dr. | 3,500 | ||
| To Bank A/c | 3,500 | ||||
| (Being Liability discharged) | |||||
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
Check out T.S. Grewal +2 Book 2020@ Official Website of Sultan Chand Publication
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