Q Akash Sanju and Yogesh are partners They decided to dissolve their firm Pass necessary Journal - Accountancy - Dissolution of Partnership Firm

Question

Q Akash Sanju and Yogesh are partners 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
liabilities have been transferred to Realisation Account:
(a) There were total book debts of Rs 38 000 A provision of bad and
doubtful debts also stood in the books at Rs 3,000 Book debts Rs
6,000 proved bad and rest paid the amount due
(b) Akash agreed to pay off his wife's loan of Rs 3,500 at a
discount of 5%
(c) A Laptop which was not recorded in the books was taken over by
Sanju at 1,500, where as its expected value was e 2,500
(d) A Contingent liability (not provided for) of Rs 2,000 was also
discharged
(e) The firm had a debit balance of Rs 13,500 in the profit and
loss account on the date of dissolution
(f) Yogesh paid the realiznation expenses of Rs 7,500 out of his
pocket (borne by firm) and he was to get a remuneration of Rs 9,000
for completing the dissolution process
(Ans Realisation Loss Rs 19,825)

Neha Chopra · Accepted Answer

Dear
Student

Journal

Date
Particulars

Debit
Credit

a
Cash
A/c
Dr
32,000

To Realisation
A/c

32,000

(Being book debts
paid)

b
Realisation A/c (3,500 -
5%)
Dr
3,325

To Akash's Capital
A/c

3,325

(Being akash agreed to
pay his wife loan at a discount of 5%)

c
Sanju's Capital
A/c
Dr
1,500

To Realisation
A/c

1,500

(Being laptop not
recorded in books was taken over by sanju)

d
Realisation
A/c
Dr
2,000

To Cash
A/c

2,000

(Being contingent
liability discharged)

e
Akash's Capital
A/c
Dr
4,500

Sanju's Capital
A/c

4,500

Yogesh's Capital
A/c

4,500

To Profit and loss
A/c

13,500

(Being loss transferred
to partners capital a/c)

f
Realisation
A/c
Dr
16,500

To Yogesh's Capital
A/c

16,500

(Being remuneration
expenses of 7,500 paid by yogesh on behalf of the firm and also Rs
9,000 remuneration due to yogesh)

Akash's Capital
A/c
Dr
6,608

Sanju's Capital
A/c

6,608

Yogesh's Capital
A/c

6,608

To Realisation
A/c

19,825

(Being loss transferred
to partners capital a/c)

Regards

Journal
Date	Particulars		Debit	Credit
a	Cash A/c	Dr.	32,000
	To Realisation A/c			32,000
	(Being book debts paid)

b	Realisation A/c (3,500 - 5%)	Dr.	3,325
	To Akash's Capital A/c			3,325
	(Being akash agreed to pay his wife loan at a discount of 5%)

c	Sanju's Capital A/c	Dr.	1,500
	To Realisation A/c			1,500
	(Being laptop not recorded in books was taken over by sanju)

d	Realisation A/c	Dr.	2,000
	To Cash A/c			2,000
	(Being contingent liability discharged)

e	Akash's Capital A/c	Dr.	4,500
	Sanju's Capital A/c		4,500
	Yogesh's Capital A/c		4,500
	To Profit and loss A/c			13,500
	(Being loss transferred to partners capital a/c)

f	Realisation A/c	Dr.	16,500
	To Yogesh's Capital A/c			16,500
	(Being remuneration expenses of 7,500 paid by yogesh on behalf of the firm and also Rs 9,000 remuneration due to yogesh)

	Akash's Capital A/c	Dr.	6,608
	Sanju's Capital A/c		6,608
	Yogesh's Capital A/c		6,608
	To Realisation A/c			19,825
	(Being loss transferred to partners capital a/c)