Question

Niyati, Kartik, and Ratik were partners in firm sharing profits and losses in the ratio of 5 : 3: 2. The firm was dissolved on 31^st March 2019 by the order of the court. After transfer of assets (other than cash) and external liabilities to Realization Account, the following transactions took place:
(a) An unrecorded liability of the firm of ₹ 45,000 was paid by Niyati.
(b) Creditors, to whom ₹ 67,000 were due to be paid, accepted furniture at ₹ 35,000 and the balance was paid to them in cash.
(c) Kartik had given a loan of ₹ 18,000 to the firm which was paid to him.
(d) Stock worth ₹ 85,000 was taken over by Ratik at ₹ 72,000.
(e) Expenses on dissolution amounted to ₹ 6,000 and were paid by Kartik.
(f) Loss on dissolution amounted to ₹ 40,000.
Pass the 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	Realisation A/c	Dr.		45,000
	To Niyati’s Capital A/c				45,000
	(Being unrecorded liability paid by the partner)
Mar. 31	Realisation A/c	Dr.		32,000
	To Cash A/c				32,000
	(Being creditors accepted the furniture and balance amount paid in cash)
Mar. 31	Kartik’s Loan A/c	Dr.		18,000
	To Cash A/c				18,000
	(Being Kartik’s loan paid)
Mar. 31	Ratik’s Capital A/c	Dr.		72,000
	To Realisation A/c				72,000
	(Being Kartik’s loan paid)
Mar. 31	Realisation A/c	Dr.		6,000
	To Kartik’s Capital A/c				6,000
	(Being dissolution expenses paid by Kartik on firm’s behalf)
Mar. 31	Niyati’s Capital A/c	Dr.		20,000
	Kartik’s Capital A/c	Dr.		12,000
	Ratik’s Capital A/c	Dr.		8,000
	To Realisation A/c				40,000
	(Being loss on dissolution charged to partners)

Note: No entry for furniture accepted by creditors. Expenses have been assumed to be borne by the firm.