Question

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

1) Expenses of dissolution Rs 500 were paid by John, a partner.

2) Joney, a partner, agreed to bear the dissolution expenses for a commission of 750. Actual dissolution expenses 650 were paid by Joney

3) Bony, partner agreed to look after the dissolution work for a remuneration of Rs 3,700. He also agreed to bear the dissolution expenses. Actual dissolution expenses Rs 4,200 were paid by Bony from the firm’s cash.

4) Sony, a partner, was appointed to look after the dissolution work for a remuneration of Rs 10,000. Sony agreed to bear the dissolution expenses. Sony took away stock worth Rs 10,000 as his remuneration. The stock had already been transferred to realisation account.

5) Vikky, a partner, agreed to look after the dissolution work for a remuneration of Rs 12,000. Vikky also agreed to bear the dissolution expenses. Actual dissolution expenses Rs 12,500 were paid by another partner, Clive, on behalf of Vikky.

6) Dissolution expenses were Rs 5,000

Answer 1

Journal
Date	Particulars	L.F.	Debit Amount (Rs)	Credit Amount (Rs)
(i)     (ii)     (iii)-A     (iii)-B     (iv) (v)-A     (v)-B     (vi)	Realisation A/c     Dr.     To John’s Capital A/c (Expenses paid by a partner on behalf of the firm) Realisation A/c   Dr.    To Joney’s Capital A/c (Remuneration paid) Realisation A/c  Dr.    To Bony’s Capital A/c (Remuneration paid) Bony’s Capital A/c   Dr.    To Bank A/c (Expenses paid by the firm) No Entry Realisation A/c   Dr.    To Vikky's Capital A/c (Remuneration paid) Vikky's Capital A/c   Dr.    To Clive's Capital A/c (Realisation expenses paid by Clive on behalf of Vikky) Realisation A/c   Dr.   To Bank A/c (Being Expenses borne and paid by the firm)		500     750     3,700     4,200       12,000     12,500     5,000	500     750     3,700     4,200       12,000     12,500     5,000