Question

Jain, Sharma and Verma were partners in a firm sharing profits in the ratio of 1 : 2 : 1. On 31st March, 2018 their firm was dissolved. It was agreed that Sharma will look after the dissolution work and will be paid ₹ 15,000 as remuneration. The dissolution expenses were ₹ 5,000. ₹ 2,84,000 were paid to the creditors in full settlement of their claim of ₹ 3,00,000. Dissolution of the firm resulted into a loss of ₹ 18,000.

Pass necessary journal entries for the above transactions.

Answer 1

Journal Entry
Date	Particulars	L.F.	Debit (₹)	Credit (₹)
(i)	Realisation A/c    ...Dr.		15,000	-
	To Sharma’s Capital A/c		-	15,000
	(Being remuneration paid to partner sharma)
(ii)	Realisation A/c    ...Dr.		5,000	-
	To Bank A/c		-	5,000
	(Being Realisation expenses paid)
(iii)	Realisation A/c    ...Dr.		2,84,000	-
	To Bank A/c		-	2,84,000
	(Being paid to Creditors)
(iv)	Jain Capital A/c    ...Dr.		4,500	-
	Sharma’s Capital A/c    ...Dr.		9,000	-
	Verma’s Capital A/c    ...Dr.		4,500	-
	To Realisation A/c		-	18,000
	(Being Realisation loss debited to partners in 1 : 2 : 1)