Question

Pass necessary journal entries on the dissolution of a firm in the following cases:

Dharam, a partner, was appointed to look after the process of dissolution at a remuneration of ₹ 12,000. Dissolution expenses were to be borne by the firm. Dissolution expenses of ₹ 11,000 were paid by Dharam.

Jay, a partner, was appointed to look after dissolution and was to be paid ₹ 15,000, including dissolution expenses. Dissolution expenses of ₹ 16,000 were paid by Vijay, another partner on behalf of Jay.

Deepa, a partner, was to handle dissolution, and for this work she was to be paid ₹ 7,000, including dissolution expenses. Dissolution expenses of ₹ 6,000 were paid from the firm's bank account.

Dev, a partner, agreed to do the work of dissolution for ₹ 7,500. He took stock of the same value as his remuneration. The stock had already been transferred to the Realisation Account.

Jeev, a partner, agreed to do the work of dissolution for which he was allowed ₹ 10,000. He agreed to bear the dissolution expenses. Actual dissolution expenses paid by Jeev were ₹12,000. These expenses were paid by Jeev by drawing cash from the firm.

Hints:

1. Dr. Realisation A/c and Cr. Dharam’s Capital A/c by ₹ 23,000.
2. 1. Dr. Realisation A/c and Cr. Jay’s Capital A/c by ₹ 15,000.
   2. Dr. Jay’s Capital A/c and Cr. Vijay’s Capital A/c by ₹16,000.
3. 1. Dr. Realisation A/c and Cr. Deepa’s Capital A/c by ₹ 7,000.
   2. Dr. Deepa’s Capital A/c and Cr. Bank A/c by ₹ 6,000.
4. No Entry.
5. 1. Dr. Realisation A/c and Cr. Jeev’s Capital A/c by ₹ 10,000.
   2. Dr. Jeev’s Capital A/c and Cr. Cash A/c by ₹ 12,000.

Answer 1

Journal
Date	Particulars	L.F.	Debit (₹)	Credit (₹)
(a)	Realisation A/c   ...Dr.		12,000	-
	To Dharam’s Capital A/c		-	12,000
	(Remuneration paid)
(b)
(i)	Realisation A/c   ...Dr.		15,000	-
	To Jay’s Capital A/c		-	15,000
	(Remuneration paid)
(ii)	Jay’s Capital A/c   ...Dr.		16,000	-
	To Vijay’s Capital A/c		-	16,000
	(Expenses borne by Jay, paid by Vijay)
(c)
(i)	Realisation A/c   ...Dr.		7,000	-
	To Deepa’s Capital A/c		-	7,000
	(Remuneration paid)
(ii)	Deepa’s Capital A/c   ...Dr.		6,000	-
	To Bank A/c		-	6,000
	(Expenses paid by firm)
(d)	No Entry
(e)
(i)	Realisation A/c   ...Dr.		10,000	-
	To Jeev’s Capital A/c		-	10,000
	(Remuneration paid)
(ii)	Jeev’s Capital A/c   ...Dr.		12,000	-
	To Bank A/c		-	12,000
	(Expenses paid by firm)