Page 182 - DEBKVOL-1

Chapter 8 Dissolution of a Partnership Firm 8.7
.
Solution: JOURNAL

Date Particulars L.F. Dr. (`) Cr. (`)
(i) Bank A/c ...Dr. 2,000
To Realisation A/c 2,000
(Unrecorded typewriter sold for ` 2,000)
(ii) Disha’s Capital A/c ...Dr. 49,000
To Realisation A/c 49,000
(Stock of ` 70,000 taken by Disha at a discount of 30%)

(iii) Realisation A/c ...Dr. 16,200
To Bank A/c 16,200
(Payment made to creditors)

(iv) Realisation A/c ...Dr. 13,000
To Mohit’s Capital A/c 13,000
(Remuneration credited for completing the dissolution process)

(v) Bank A/c ...Dr. 50,000
To Loan to Nandan A/c 50,000
(Loan advanced to Nandan recovered)

(vi) Bank A/c ...Dr. 12,000
To Realisation A/c 12,000
(` 12,000 recovered from a debtor which was written off as Bad Debts
last year)

Illustration 5.

Parul, Payal and Priyanka are partners. They decided to dissolve their firm. Pass necessary
Journal entries for the following after various assets (other than Cash and Bank) and the third
party liabilities have been transferred to Realisation Account:
(i) There were total Debtors of ` 76,000. A Provision for Doubtful Debts also stood in the
books at ` 6,000. ` 12,000 Debtors proved bad and rest paid the amount due.

(ii) Parul agreed to pay off her husband’s loan of ` 7,000 at a discount of 5%.
(iii) A machine which was not recorded in the books was taken over by Payal at
` 3,000, whereas its expected value was ` 5,000.

(iv) A contingent liability (not provided for) of ` 4,000 was also discharged.
(v) The firm had a debit balance of ` 27,000 in the Profit and Loss Account on the date
of dissolution.

(vi) Priyanka paid realisation expenses of ` 15,000 out of her pocket and she was to get a
remuneration of ` 18,000 for completing the dissolution process. (AI 2012 C)