Question

B, C and D were partners in a firm sharing profits and losses in the ratio of 1: 4: 5. On 31st March, 2018 the firm was dissolved and on that date the Balance Sheet of the firm showed a loan of ₹ 10,000 given by C’s brother F. C agreed to pay his brother’s loan.

Pass necessary journal entry for the above on the firm’s dissolution.

Answer 1

Journal entry
Date	Particulars	L.F.	Dr. (₹)	Cr. (₹)
	Realisation A/c    ...Dr.		10,000	-
	To C’s Capital A/c		-	10,000
	(Being C’s brother’s loan taken over by C)