10 :- Pass journal entries for the following at the time of dissolution of the firm of X and Y after the assets (other than cash) and outside liabilties have been transferred to realisation account :
(a) Sale of Assets – Rs 50,000.
(b) Payment of Liabilties — Rs 10,000.
(c) A commision of 5% was allowed to X, a partner, on sale of assets.
(d) Realisation expenses were Rs 15,000. the firm had agreed with X, to reimburse him Rs 10,000.
(e) Employees Provident Fund Rs 10,000 was paid.
(f) Z, a debtor, whose account of Rs 6,000 was written off as bad earlier, paid 60% of the amount.
(g) Investment (Book Value Rs 10,000) realised at 150%.
(h) Realisation expenses were Rs 10,000. the firm had agreed with Y, a partner, to reimburse him upto Rs 7,500.
Solution :-
