Question 16 Chapter 7 of +2-A

Question 16 Chapter 7 of +2-A

16. Pass necessary Journal entries on the dissolution of a firm in the following cases:
a Dharam, a partner, was appointed to look after the process of dissolution at a remuneration of 12,000 and he had to bear the dissolution expenses. Dissolution expenses 11,000 were paid by Dharam.
b Jay, a partner, was appointed to look after the process of dissolution and was allowed a remuneration of 15,000. Jay agreed to bear dissolution expenses. Actual dissolution expenses 16,000 were paid by Vijay, another partner on behalf of Jay.
c Deepa, a partner, was to look after the process of dissolution and for this work she was allowed a remuneration of 7,000. Deepa agreed to bear dissolution expenses. Actual dissolution expenses 6,000 were paid from the firm’s bank account.
d Dev, a partner, agreed to do the work of dissolution for 7,500. He took away stock of the same amount as his commission. The stock had already been transferred to Realization Account.
e Jeev, a partner, agreed to do the work of dissolution for which he was allowed a commission of 10,000. He agreed to bear the dissolution expenses. Actual dissolution expenses paid by Jeev were 12,000. These expenses were paid by Jeev by drawing cash from the firm.
f A debtor of 8,000 already transferred to Realization Account agreed to pay the realisation expenses of 7,800 in full settlement of his account.

 

The solution of Question 16 Chapter 7 of +2-A: –

 

DateParticulars
L.F.DebitCredit
aRealization A/cDr. 12,000 
 To Dharam’s Capital A/c   12,000
 (Being Remuneration paid)   
bRealization A/cDr. 2,500 
 To Jay’s’s Capital A/c   2,500
 (Being Liability discharged )    
 Jay’s Capital A/cDr. 16,000 
 To Vijay’s Capital A/c   16,000
 (Being Expenses borne by Jay, paid by Vijay)    
cRealization A/cDr. 7,000 
 To Deepa’s Capital A/c   7,000
 ( Being Remuneration paid)    
 Deepa’s Capital A/cDr. 6,000 
 To Bank A/c   6,000
 (Being Expenses paid by firm)    
dNo Entry    
      
eRealization A/cDr. 10,000 
 To Jeev’s Capital A/c   10,000
 (Being Remuneration paid)    
 Jeev’s Capital A/cDr. 12,000 
 To Jeev’s Capital A/c   12,000
 (Being Expenses paid by firm)    
fNo Entry    
      
      

 

 

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)

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

2 Book 1 min - Question 16 Chapter 7 of +2-A - T.S. Grewal 12 Class Part - A Vol. 1
Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms

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