Pass Journal entries for the following at the time of dissolution of a firm:
(a) Sale of Assets - Rs. 50,000
(b) Payment of Liabilities - Rs. 10,000
(c) a commission of 5% allowed to Mr. X a partner, on sale of assets.
(d) Realisation expenses amounted to Rs. 15,000. The firm had agreed with Amrit, a partner, to reimburse him up to Rs. 10,000.
(e) Z, a old customer, whose account for Rs. 6,000 was written off as bad in the previous year, paid 60% of the amount written off.
(f) Investment (Book value Rs. 10,000) realised at 15%.

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Solution

(a) Bank A/C..... Dr. 50000
To Realisation A/C 50000
(Being sale of assets)

(b) Realisation A/C..... Dr. 10000
To Bank A/C 10000
(Being payment of liabilities)

(c) Realisation A/C...... Dr. 2500
To X's Capital A/C 2500
(Being commission allowed to X for sale of assets)

(d) Realisation A/C...... Dr. 10000
To Amrit's Capital 10000
(Being reimbursement provided to Amrit for bearing realisation expenses)

(e) Bank A/C..... Dr. 3600
To Realisation A/C 3600
(Being 60% of the amount received as bad debt recovery)

(f) Bank A/C...... Dr. 1500
To Realisation A/C 1500
(Being investment realised at 15%)

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Q. Pass Journal entries for the following at the time of dissolution of a firm:
(a) Sale of Assets − ₹ 50,000.
(b) Payment of Liabilities − ₹ 10,000.
(c) A commission of 5% allowed to Mr. X, a partner, on sale of assets.
(d) Realisation expenses amounted to ₹ 15,000. The firm had agreed with Amrit, a partner, to reimburse him up to ₹ 10,000.
(e) Z, an old customer, whose account for ₹ 6,000 was written off as bad in the previous year, paid 60% of the amount written off.
(f) Investment (Book Value ₹ 10,000) realised at 150%.

Q. Pass Journal entries for the following:
(a) Realisation expenses amounted to Rs. 10,000 were paid on the behalf of Alok, a partner, with whom it was agreed at Rs. 7,500.
(b) Realisation expenses amounted to Rs. 5,000 It was agreed that the firm will pay Rs. 2,000 and balance by Ravinder, a Partner.
(c) Dissolution expenses amounted to Rs. 10,000 were paid by Amit, a partner, on behalf of the firm.

Pass journal entries for the following transactions :

(i) Dissolution expenses amounted to Rs. 20,000. Rs. 8,000 were to be borne by the firm and the balance by Maruti, a partner. The expenses were paid by Maruti.

(ii) Sudhir, a partner, was allowed a remuneration of Rs. 10,000 to carry out dissolution of the firm. He was to bear all expenses of realisation which amounted to Rs. 16,000 were paid by the firm.

(iii) Ravi, a partner, is allowed a remuneration of Rs. 15,000 for dissolution work and is to bear all expenses of realisation which amounted to Rs 5,000 were paid by the firm.

(iv) Anil, a partner, is paid remuneration of Rs. 20,000 for dissolution work. Realisation expenses amounted to Rs. 7,500 were paid by the firm.

(v) Vijay, a partner, paid realisation expenses of Rs 10,000 and these were to be borne by him.

Give the necessary journal entries in each of the following alternative cases :

(i) Realisation expenses amounted to Rs. 500.

(ii) Realisation expenses paid by the firm amounted to Rs. 500 and the partner has to bear the realisation expenses.

(iii) 'A' one of the partners was to bear all the realisation expenses for which he was given a commission of 2% of net cash realised from dissolution. Cash realised from assets was Rs 25,000 and cash paid for liabilities amounted to Rs 5,000

Pass journal entries for the following transactions :

(i) Realisation expenses amounted to Rs. 5,000.

(ii) Realisation expenses amounted to Rs. 8,000 were paid by partner X.

(iii) Realisation expenses amounted to Rs. 10,000 were paid by the firm on behalf of a partner.

(iv) Realisation expenses amounted to Rs. 15,000 were paid by the firm. Mr. X, one of the partners, has to bear these expenses.

(v) Realisation expenses amounted to Rs. 20,000 were paid by the firm. Rs. 8,000 were to be borne by the firm and the balance by Maruti, a partner.

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