Page 191 - DEBKVOL-1

8.16 Double Entry Book Keeping—CBSE XII
Illustration 15.
Pass the Journal entries for the following:
(i) Expenses of realisation ` 5,000.
(ii) Expenses of realisation ` 3,000 paid by a partner ‘Z’.
(iii) ‘X’ a partner agreed to take over the responsibility of completing dissolution work at an
agreed remuneration of ` 5,000 and to bear all realisation expenses. Actual realisation
expenses amounted to ` 4,000 were paid by X out of his private fund.
(iv) Realisation expenses amounted to ` 20,000 were paid by the firm on behalf of Z, a partner,
with whom it was agreed at ` 15,000.
(v) Realisation expenses amounted to ` 7,000. It was agreed that the firm will pay 3,000 and
balance by Y, a partner.
(vi) Dissolution expenses amounted to ` 10,000 were paid by Z a partner, on behalf of the firm.
Solution: JOURNAL

Date Particulars L.F. Dr. (`) Cr. (`)
(i) Realisation A/c ...Dr. 5,000
To Bank A/c 5,000
(Expenses paid by the firm)
(ii) Realisation A/c ...Dr. 3,000
To Z’s Capital A/c 3,000
(Expenses paid by Z)
(iii) Realisation A/c ...Dr. 5,000
To X’s Capital A/c 5,000
(Remuneration due to X)
(iv) (a) Realisation A/c ...Dr. 15,000
To Z’s Capital A/c 15,000
(Z’s Capital A/c credited for realisation expenses)
(b) Z’s Capital A/c ...Dr. 20,000
To Bank A/c 20,000
(Partner charged for expenses of dissolution as agreed)
(v) Realisation A/c ...Dr. 3,000
To Bank A/c 3,000
(Realisation expenses ` 3,000 paid by the firm out of ` 7000 and
balance borne by Y)
(vi) Realisation A/c ...Dr. 10,000
To Z’s Capital A/c 10,000
(Realisation expenses paid by Z on behalf of the firm)
Illustration 16.
Following is the Balance Sheet of Luv and Kush as at 31st March, 2018:
Liabilities ` Assets `
Mrs. Luv’s Loan 1,50,000 Bank 76,000
Mrs. Kush’s Loan 1,00,000 Debtors 3,00,000
Trade Creditors 3,00,000 Less: Provision for Doubtful Debts 20,000 2,80,000
Bills Payable 1,00,000 Investments 1,00,000
Outstanding Expenses 50,000 Stock 4,00,000
Capital A/cs: Truck 7,50,000
Luv 10,00,000 Plant and Machinery 8,00,000
Kush 8,00,000 18,00,000 Kush: Drawings 94,000
25,00,000 25,00,000