Question

Pass Journal entries for the following transactions at the time of dissolution of the firm:
(a) Loan of ₹ 10,000 advanced by a partner to the firm was refunded.
(b) X, a partner, takes over an unrecorded asset (Typewriter) at ₹ 300.
(c) Undistributed balance (Debit) of Profit and Loss Account ₹ 30,000. The firm has three partners X,Y and Z.
(d) Assets of the firm realised ₹ 1,25,000.
(e) Y who undertakes to carry out the dissolution proceedings is paid ₹ 2,000 for the same.
(f) Creditors are paid ₹ 28,000 in full settlement of their account of ₹ 30,000.

Answer 1

Journal

Date	Particulars		L.F.	Debit Amount (Rs)	Credit Amount (Rs)
a.	Partner’s Loan A/c	Dr.		10,000
	To Bank A/c				10,000
	(Loan refunded)
b.	X’s Capital A/c	Dr.		300
	To Realisation  A/c				300
	(Unrecorded assets took over )
c.	X’s Capital A/c	Dr.		10,000
	Y’s Capital A/c	Dr.		10,000
	Z’s Capital A/c	Dr.		10,000
	To Profit & Loss A/c				30,000
	(Loss distributed)
d.	Bank A/c	Dr.		1,25,000
	To Realisation  A/c				1,25,000
	(Assets realized)
e.	Realisation  A/c	Dr.		2,000
	To Y’s Capital A/c				2,000
	(Amount given for dissolution proceedings)
f.	Realisation  A/c	Dr.		28,000
	To Bank A/c				28,000
	(Creditors paid)