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Question -

What journal entries will be recorded for the following transactions on the dissolution of a firm:
[a] Payment of unrecorded liabilities of ₹ 3,200.
[b] Stock worth ₹ 7,500 is taken by a partner Rohit.
[c] Profit on Realisation amounting to ₹ 18,000 is to be distributed between the partners Ashish and Tarun in the ratio of 5:7.
[d] An unrecorded asset realised ₹ 5,500.



Answer -

Journal

 

Particulars

L.F.

Amount

₹

Amount

₹

(a)

Realisation A/c

Dr.

 

3,200

 

 

To Bank A/c

 

 

 

3,200

 

(Unrecorded liabilities paid)

 

 

 

 

 

 

 

 

 

 

(b)

(Rohit’s Capital A/c

Dr.

 

7,500

 

 

To Realisation A/c

 

 

 

7,500

 

(Stock is taken over by Rohit)

 

 

 

 

 

 

 

 

 

 

(c)

Realisation A/c

Dr.

 

18,000

 

 

To Ashish’s Capital A/c

 

 

 

7,500

 

To Tarun’s Capital A/c

 

 

 

10,500

 

(Profit on Realisation is transferred to Partners’ Capital Account)

 

 

 

 

 

 

 

 

 

 

(d)

Bank A/c

Dr.

 

5,500

 

 

To Realisation A/c

 

 

 

5,500

 

(Unrecorded asset sold)

 

 

 

 

 

 

 

 

 

 

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