Question

Pass necessary Journal entries for the following transactions, at the time of dissolution of the firm:

1. Realisation Expenses ₹ 3,000 paid.
2. Realisation Expenses paid by the firm ₹ 2,000; Mr. X one of partners has to bear these expenses.
3. Y, one of the partners, took over a machine for ₹ 20,000
4. Z, one of the partners agreed to take over the creditors of ₹ 30,000 for ₹ 20,000.
5. A, one of the partners has given loan to the firm of ₹ 10,000. It was paid back to him at the time of dissolution.
6. Profit and Loss Account balance of ₹ 50,000 appeared on the assets side of the Balance Sheet.

Answer 1

Journal Entries
Date	Particulars	L.F.	Debit (₹)	Credit (₹)
	Realisation A/c Dr.		3,000	—
	To Bank A/c		—	3,000
	(Being realisation expenses paid)
	X’s Capital A/c Dr.		2,000	—
	To Bank A/c		—	2,000
	(Being realisation expenses paid by the firm but borne by X)
	Y’s Capital A/c Dr.		20,000	—
	To Realisation A/c		—	20,000
	(Being machine taken over by Y)
	Realisation A/c Dr.		20,000	—
	To Z’s Capital A/c		—	20,000
	(Being creditors taken over by Z at ₹ 20,000)
	A’s Loan A/c Dr.		10,000	—
	To Bank A/c		—	10,000
	(Being partner’s loan repaid)
	Partners’ Capital A/cs Dr.		50,000	—
	To Profit & Loss A/c		—	50,000
	(Being debit balance of Profit & Loss Account transferred to partners’ Capital Accounts in their profit-sharing ratio)