Page No 8.49:
Question 13:
Rohit, Kunal and Sarthak are partners in
a firm. They decided to dissolve their firm. Pass necessary Journal entries for
the following after various assets (other than Cash and Bank) and the third
party liability have been transferred to Realisation
Account:
(a) Kunal agreed to pay off his wife's loan of ` 6,000.
(b) Total Creditors of
the firm were
` 40,000. Creditors worth ` 10,000 were given
a piece of furniture costing ` 8,000 in full and final settlement.
Remaining Creditors
allowed a discount of 10%(c) Rohit had given a loan of ` 70,000
to the firm which was duly paid.
(d) A machine which was not recorded in the books was taken over by Kunal at ` 3,000, whereas its expected value was ` 5,000.
(e) The firm had a debit balance of ` 15,000 in the Profit and
Loss Account on the date of dissolution.
(f) Sarthak paid the realisation
expenses of `
16,000 out of his private funds, who was to get a remuneration of ` 15,000
for completing dissolution process and was responsible to bear all the realisation expenses.
Answer:
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Journal |
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Date |
Particulars |
L.F. |
Debit Amount ` |
Credit Amount ` |
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(a) |
Realisation A/c |
Dr. |
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6,000 |
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To Kunal’s Capital A/c |
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6,000 |
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(Being Kunal agrees to pay off his wife’s loan) |
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(b) |
Realisation A/c |
Dr. |
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27,000 |
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To Cash A/c |
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27,000 |
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(Being Creditors worth ` 30,000 paid |
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(c) |
Rohit’s Loan A/c |
Dr. |
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70,000 |
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To Cash A/c |
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70,000 |
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(Being Loan paid by the firm) |
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(d) |
Kunal’s Capital A/c |
Dr. |
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3,000 |
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To Realisation A/c |
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3,000 |
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(Being asset taken over by Kunal) |
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(e) |
Rohit’s Capital A/c |
Dr. |
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5,000 |
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Kunal’s Capital A/c |
Dr. |
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5,000 |
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Sarthak’s Capital A/c |
Dr. |
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5,000 |
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To Profit and Loss A/c |
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15,000 |
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(Being Loss distributed equally) |
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(f) |
Realisation A/c |
Dr. |
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15,000 |
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To Sarthak’s Capital A/c |
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15,000 |
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(Being remuneration of ` 15,000 paid for completion of dissolution process) |
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Page No 8.50:
Question 14:
New
This Question will be available within two days
Page No 8.50:
Question 15:
Lal and Pal were partners in a firm sharing profits in the ratio of 3 : 7. On 1st April, 2015 their firm was dissolved. After
transferring assets (other than cash) and outsider's liabilities to Realisation Account, you are given the following
information:
(a) A creditor of
` 3,60,000 accepted machinery valued at `
5,00,000 and paid to the firm ` 1,40,000.
(b) A second creditor for
` 50,000 accepted stock at ` 45,000 in full settlement of his claim.
(c) A third creditor amounting to ` 90,000 accepted `
45,000 in cash and investments worth ` 43,000 in full
settlement of his claim.
(d) Loss on dissolution was ` 15,000.
Pass necessary Journal entries for the above transactions in the books of firm
assuming that all payments were made by cheque.
Answer:
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In the books of Lal and Pal Journal Entry |
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Date |
Particulars |
L.F. |
Debit Amount ` |
Credit Amount ` |
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(a) |
Bank A/c |
Dr. |
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1,40,000 |
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To Realisation A/c |
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1,40,000 |
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(A creditor of ` 3,60,000 accepted
machinery valued at ` 5,00,000 and paid ` 1,40,000 to the
firm) |
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(b) |
No entry |
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(c) |
Realisation A/c |
Dr. |
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45,000 |
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To
Cash A/c |
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45,000 |
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(A third
creditor of ` 90,000 accepted ` 45,000 in cash and
investments worth ` 43,000 in full
settlement of his claim) |
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(d) |
Lal’s Capital
A/c |
Dr. |
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4,500 |
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Pal’s Capital
A/c |
Dr. |
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10,500 |
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To Realisation A/c |
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15,000 |
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(Loss on
dissolution transferred to Partners capital accounts) |
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Note: No entry will be
made when asset is taken over by the creditor
Page No 8.50:
Question 16:
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 paisa 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.
Answer:
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Journal |
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Date |
Particulars |
L.F. |
Debit Amount ( `) |
Credit Amount ( `) |
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a. |
Bank A/c |
Dr. |
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1,250 |
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To Realisation A/c |
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1,250 |
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(Amount received) |
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Realisation A/c |
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To Bank A/c |
Dr. |
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2,500 |
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(Liability discharged) |
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2,500 |
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b. |
Realisation A/c |
Dr. |
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50,000 |
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To A’s Capital A/c |
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50,000 |
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(Liability paid by a partner) |
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Dr. |
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10,000 |
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c. |
Realisation A/c |
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10,000 |
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To Bank A/c |
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(Liability discharged) |
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d. |
Realisation A/c |
Dr. |
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3,500 |
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To Bank A/c |
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3,500 |
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(Liability discharged) |
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