Advertisement Remove all ads

G and H Were Partners in a Firm Sharing Profits in the Ratio of 9: 7. on 1.4.2015 Their Firm Was Dissolved. After Transferring Assets (Other than Cash) and Outsider'S Liabilities to Realisation Account You Are Given the Following Information - Accountancy

Advertisement Remove all ads
Advertisement Remove all ads
Advertisement Remove all ads

G and H were partners in a firm sharing profits in the ratio of 9: 7. On 1.4.2015 their firm was dissolved. After transferring assets (other than cash) and outsider's liabilities to realisation account you are given the following information :

(a) Mohan, a creditor of Rs 2,30,000 accepted debtors of Rs  2,00,000 at a discount of 10% and the balance was paid to him by cheque.

(b) Sohan, a second creditor for Rs 7,00,000 accepted land of the book value of Rs 10,00,000 at Rs 15,00,000 and paid the balance to the firm by cheque.

(c) Ram, a third creditor for Rs 80,000 took over stock of book value of Rs 40,000 at Rs 30,000 and investments of Rs 48,000 in full settlement of his claim.

(d) Loss on dissolution was Rs 48,000.

Pass necessary journal entries for the above transactions in the books of G and H.

Advertisement Remove all ads

Solution

In the books of G and H Journal

Date Particulars L.F.

Dr.

Rs

Cr

Rs

(a)

 

 

 

 

(b)

 

 

 

(c)

 

(d)

 

 

 

Realisation A/c                                 Dr

                  To Bank A/c

(Being Mohan a creditor of Rs 2,30,000 accepted debtors
Rs 2,00,000 at a discount of 10% and the balance was paid
to him by cheque)

 

Bank A/c Dr

             To Realisation A/c

(Being Sohan a creditor of Rs 7,00,000 accepted land of book value of Rs 10,00,000 at Rs 15,00,000 and paid the balance by cheque)

 

No Entry

 

G’s Capital A/c                                  Dr

H’s Capital A/c                                   Dr

              To Realisation A/c

(Being loss on dissolution transferred to partners capital accounts)

 

50,000

 

 

 

 

8,00,000

 

 

 

 

 

27,000

21,000

 

 

 

50,000

 

 

 

 

8,00,000

 

 

 

 

 

 

48,000

 


Note: No entry will be made when asset is taken over by the creditor

Concept: Dissolution of Partnership Firm
  Is there an error in this question or solution?
Advertisement Remove all ads
Share
Notifications

View all notifications


      Forgot password?
View in app×