Question

What journal entries will be recorded for the following transactions on the dissolution of a firm:

[a] Payment of unrecorded liabilities of Rs 3,200.

[b] Stock worth Rs 7,500 is taken by a partner Rohit.

[c] Profit on Realisation amounting to Rs 18,000 is to be distributed between the partners Ashish and Tarun in the ratio of 5:7.

[d] An unrecorded asset realised Rs 5,500.

Answer 1

Journal
	Particulars			L.F.	Amount Rs	Amount Rs
(a)	Realisation A/c		Dr.		3,200
	To Bank A/c					3,200
	(Unrecorded liabilities paid)
(b)	(Rohit’s Capital A/c		Dr.		7,500
	To Realisation A/c					7,500
	(Stock is taken over by Rohit)
(c)	Realisation A/c		Dr.		18,000
	To Ashish’s Capital A/c					7,500
	To Tarun’s Capital A/c					10,500
	(Profit on Realisation is transferred to Partners’ Capital Account)
(d)	Bank A/c		Dr.		5,500
	To Realisation A/c					5,500
	(Unrecorded asset sold)