Question

Write 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 Entries.

$\begin{array}{ccccc}\text{Date}& \text{Particulars}& \text{L.F.}& \text{Amount (Rs.)}& \text{Amount (Rs.)}\\ \left(\text{a}\right)& \text{Realisation A/c}\text{Dr.}& & 3,200& \\ & \text{To Bank A/c}& & & 3,200\\ & \underset{–}{\left(\text{Unrecorded liabilities paid}\right)}& & & \\ \left(\text{b}\right)& \text{Rohit's Capital A/c}\text{Dr.}& & 7,500& \\ & \text{To Realisation A/c}& & & 7,500\\ & \underset{–}{\left(\text{Stock taken over by partner}\right)}& & & \\ \left(\text{c}\right)& \text{Realisation A/c}\text{Dr.}& & 18,000& \\ & \text{To Ashish's Capital A/c}& & & 7,500\\ & \text{To Tarun's Capital A/c}& & & 10,500\\ & \underset{–}{\left(\text{Profit on realisation transferred to partners capital account}\right)}& & & \\ \left(\text{d}\right)& \text{Bank A/c}\text{Dr.}& & 5,500& \\ & \text{To Realisation A/c}& & & 5,500\\ & \left(\text{Unrecorded asset sold}\right)& & & \end{array}$