The assets were realised as follows .
• Stock 20,000; Bills Receivable 3,800:
Furniture Rs 5,100; Plant & Machinery Rs. 35,000; Sundry Debtors at 10% less than book.
Creditors allowed a discount of 5 % Pritam agreed to pay his wife's loan. Naresh agreed to guy outstanding rent. Expenses on dissolution came to Rs. 800.
Pritam and Naresh shared profits and losses in the ratio of their Capitals. Accounts were finally settled.
Journal, Realisation Account, Capital Accounts and Bank Account
what is treatment of partner"s commission in dissolution of firm
how are unrecorded assets treated in realisation account?
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?
• Stock 20,000; Bills Receivable 3,800:
Furniture Rs 5,100; Plant & Machinery Rs. 35,000; Sundry Debtors at 10% less than book.
Creditors allowed a discount of 5 % Pritam agreed to pay his wife's loan. Naresh agreed to guy outstanding rent. Expenses on dissolution came to Rs. 800.
Pritam and Naresh shared profits and losses in the ratio of their Capitals. Accounts were finally settled.
Journal, Realisation Account, Capital Accounts and Bank Account
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:
Liabilities:
Capital Accounts
J:24,000
S: 17,200
R: 20,800
Reserve Fund: 6,000
Employees' Provident Fund: 6,000
Depreciation Reserve 10,000
Creditors 22,000
Total: 1,06,000
ASSETS:
Buldings: 20,000
Plant: 44,000
Stock 12000
Joint Life Policy 12,400
Debtors 10,000
Accrued Interest 2,000
Cash 5,600
Total: 1,06,000
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.