Question

Entry in dissolution for machinery depreciation reserve and
If commission recieved in advance is appearing in balance sheet 2000 and there is a adjustment entry stating commission recieved in advance paid back to customers deducting 400 what will be the entry
And if workmen compensation fund is only present in adjustment wat will we do
Also wat is the diff btw wcr n wcf and wat will be their accting treatment

Answer 1

Entry in dissolution for machinery depreciation reserve:-

Machinery depreciation reserve account Dr
To realisation account

Commission recvd in adv, given back.

1) Commission recd in adv account Dr 2000

To realisation 2000
(Being commission recvd in advance trfd)

2) Realisation account Dr 1600

To Cash 1600
(Being commission recvd in adv paid back)

3) workmen compensation fund present in adjustment
No entry

WCR and WCF both are same. There is no difference between two.
At the time of admission of a partner if there is no liability against it then it is transfer to Partner’s cap account in Old Profit sharing Ratio and if there is liability against it then the after deducting the Liability rest of the amount must be transferred to Partner’s cap account in Old Profit sharing Ratio.