What is a Realisation
The following is the balance sheet of A and B as at 31st March, 2014:
Mrs. A's Loan - 15000
Mrs. B' Loan - 10000
Trade Creditors - 30000
Bills Payable - 10000
Outstanding Expenses - 5000
A: Capital - 100000
B: Capital - 80000
Cash - 4200
Bank - 3400
Less: Provision - 2000
Investments - 10000
Stock - 40000
Truck - 75000
Plant and Machinery - 80000
B : Drawings - 9400
1) Half of the stock was sold at 10% less than the book value and the remaining half was taken over by A at 20% more than the book value.
2) During the course of dissolution a liability under action for damages was settled at 12000 against 10000 included in the creditors.
3) Assets realised as follows-
Plant machinery- 100000 ; Truck-120000; Goodwill was sold for 25000 ; Bad Debts amounted to 5000 ; Half the investments were sold at book value.
4) A promised to pay off Mrs.A's Loan and took away half the investments at 10% discount.
5) Trade Creditors and Bills Payable were due on average basis of one month after 31st march, but were paid immediately on 31st march, at 12% discount p.a.
Prepare Necessary Accounts
in dissolution , what is the accounting treatment of loan , which appear in the question`s balance sheet ?
do we distribute employee provident fund to partners at the time of :
1. admission/ retirement
2. dissolution( is it treated the same way as reserve fund ?)
J, S and R were in partnership sharing profts and losses in the ratio of 3:2:1. Therir balance sheet as on 31st Decmebr, 1999 was as follows:
Reserve Fund: 6,000
Employees' Provident Fund: 6,000
Depreciation Reserve 10,000
Joint Life Policy 12,400
Accrued Interest 2,000
It was agreed to dissolve the firm and the terms of the dissolution were:
Prepare Realisation account , Capital accoounts and Cash account.
ALSO EXPLAIN ME THE TREATMENT FOR EMPLOYEES PROVIDENT FUND AND DEPRECIATION RESERVE.
experts please tell me the treatment of workmen compensation reserve/fund and employees provident fund in the dissolution chapter
how to treat joint life policy in dissolution of partnership when surrender value is given ?
Journal entry for payment of unrecorded liabilities in cash is given as-
Cash/Bank A/c Dr.
To Realisation A/c
The same entry is given for the recording of the sale of unrecorded assets. Why is it so?
State the difference
between dissolution of partnership and dissolution of partnership
report on procedure of winding up partnership firm
firm’s debts and partner’s private debts.
If workman compensation claim appears in balance sheet, what will be its treatment on dissolution?
Why investment fluctuation reserve is not credited to partner's capital a/c in case of dissolution of firm?
plz provide me a solution of divya sharma vk pulisher of accountancy class 12
solution of vk ohri and tr jain of economics class 12
Y Ltd. forfeited 90 shares of ` 10 each, ` 8 called up issued at a premium of ` 2 per share to
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