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.

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Solution

JOURNAL ENTRIES
$\begin{matrix} Date & Particulars & L.F. & Dr.(Rs) & Cr.(Rs) (i) & Realisation A/c D r . & 8, 000 To Maruti's Capital A/c & 8, 000 (Realisation expenses paid by the partner on behalf of the firm) - -------------------------------------------------- - (i i) & Realisation A/c D r . & 10, 000 Sudhir's Capital A/c D r . & 6, 000 To Bank A/c & 16, 000 (Remuneration allowed to the partner and excess expenses charged from him) - -------------------------------------------------- - (i i i) & Realisation A/c D r . & 15, 000 To Ravi's Capital A/c & 10, 000 To Bank A/c & 5, 000 (Remuneration allowed and expenses paid on behalf of the partner) - -------------------------------------------------- - (i v) & Realisation A/c D r . & 27, 500 To Anil's Capital A/c & 20, 000 To Bank A/c & 7, 500 (Remuneration allowed and expenses paid) - -------------------------------------------------- - (v) & No Entry \end{matrix}$

Note:
In Case (iv) partner is not liable to bear the expenses of realisation.

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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.

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

Q. Pass neceisaly Journal. entries on the dissolution of a firm in the fondling cases:
(a) Dharam, a partner, was appointed to Iook after the process of dissolution at a remuneration of Rs. 12,000 and he had to bear the dissolution expenses. Dissolution expenses Rs. 11,000 were paid by Dharam.
(b) Jay, a partner, was appointed to look after the process of dissolution and was allowed a remuneration of Rs. 15,000. Jay agreed to bear dissolution expenses Rs. 16,000 were paid by Vijay another partner on behalf of Jay.
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(e) Jeev, a partner, agreed to do the work of dissolution for which he was allowed a commission of Rs. 10,000. He agreed to dissolution expenses. Actual dissolution expenses paid by Jeev were Rs. 12,000. These expenses were paid by Jeev by drawing cash from the firm.
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(a) Realisation expenses of Rs. 15,000 were to be met by Rahul, a partner, but were paid by the firm.
(b) Ramesh, a partner, was paid remuneration of Rs. 25,000 and he was to meet all expenses.
(c) Anuj, a partner, was paid remuneration of Rs. 2,000 and he was to meet all expenses. Firm paid an expense of Rs. 5,000.

The firm of Ravi and Mohan was dissolved on 1st March, 2013. According to the agreement Ravi had agreed to undertake the dissolution work for an agreed remuneration of Rs. 2,000 and bear all realisation expenses. Dissolution expenses were Rs. 1,500 and the same were paid by the firm. Pass necessary journal entries for the payment of dissolution expenses.

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