Question

Muskaan, Priya and Rohan were partners in a firm sharing profits and losses in the ratio of 2 : 3: 1. The firm was dissolved on 31-3-2019. After transfer of assets (other than cash) and external liabilities to realisation account, the following transactions took place:
(a) Furniture of  ₹ 70,000 was sold for ₹ 74,000 by auction and  auctioneer's commission amounted to ₹ 3,000.
(b) There was an unrecorded computer which was taken over by Priya for ₹ 7,000.
(c) Creditors were paid ₹ 44,000 in full settlement of their account of ₹ 49,000.
(d)  Rohan's sister's loan ₹ 20,000 was paid off by Muskaan.
(e) Expenses on dissolution were ₹ 15,000 and paid by Rohan.
(f) Loss on dissolution amounted to ₹ 24,000.

Pass necessary journal entries for the above transactions in the books of the firm.

Answer 1

Journal 

Date	Particulars		L.F.	Debit Amount(₹)	Credit Amount(₹)
2019
Mar. 31	Cash A/c (74,000 – 3,000)	Dr.		71,000
	To Realisation A/c (74,000 – 3,000)				71,000
	Being furniture sold and auctioneer’s commission paid)
Mar. 31	Priya’s Capital A/c	Dr.		7,000
	To Realisation A/c				7,000
	(Being unrecorded computer taken over by Priya, a partner)
Mar. 31	Realisation A/c	Dr.		44,000
	To Cash A/c				44,000
	(Being creditors paid in full settlement of their dues)
Mar. 31	Realisation A/c	Dr.		20,000
	To Muskaan’s Capital A/c				20,000
	(Being Rohan’s sister loan paid by Muskaan)
Mar. 31	Realisation A/c	Dr.		15,000
	To Rohan’s Capital A/c				15,000
	(Being expenses on dissolution paid by partner)
Mar. 31	Muskaan’s Capital A/c	Dr.		8,000
	Priya’s Capital A/c	Dr.		12,000
	Rohan’s Capital A/c	Dr.		4,000
	To Realisation A/c				24,000
	(Being loss on dissolution charged to partners

Note: Expenses have been assumed to be borne by the firm.