15 :- Rohit, Kunal and Sarthak partners decided to dissolve their firm. Pass necessary Journal entries for the following after various assets (other than cash and bank) and outside liability had been transferred to Realisation account :
(a) Kunal agreed to pay his wife’s loan of Rs 60,000.
(b) Total creditors of the firm were Rs 40,000. Creditors of Rs 10,000 were given part furniture of book value Rs 8,000 out of total furniture of book value Rs 28,000 in settlement. Remaining creditors allowed discount of 10%.
(c) Rohit had given a loan of RS 70,000 to the firm for which Rs 68,000 were paid in settlement.
(d) A machine which was not recorded in the books was taken by Kunal at Rs 3,000, whereas its expected value was Rs 5,000.
(e) The firm had stock of Rs 2,40,000, 25% of the stock was taken over by an unrecorded creditor of Rs 70,000 in full settlement of his claim and the remaining stock was taken over by Rohit at 80% of cost.
(f) Sarthak paid the realisation expenses of Rs 16,000 and was to be paid Rs 15,000 including expenses for completing dissolution process.
16 :- Pass necessary journal entries for the following transactions on the dissolution of a firm after various assets (other than cash) and outside liabilties have been transferred to Realisation account :
(i) Realisation expenses of the firm amounting to Rs 2,600 were paid by partner, Aman.
(ii) A creditor of Rs 4,500 took over stock valued at Rs 5,200 in full settlement.
(iii) An unrecorded asset realised at Rs 3,500.
(iv) Remaining creditors amounting to Rs 20,000 were paid at a discount of 5%.
(v) Remaining stock of Rs 30,000 was taken over by Bimal, a partner, at a discount of 20%.
(vi) Investment whose face value was Rs 10,000 was realised at 40%.
17 :- Pass the necessary journal entries for the following transactions on the dissolution of the partnership firm of Tina and Rina after the various assets (other than cash and bank) and external liabilities have been transferred to Realisation Account :
(a) There was an outstanding bill for repairs for which Rs 20,000 were paid.
(b) The firm had stock of Rs 80,000. Tina took over 50% of the stock at a discount of 20% while the remaining stock was sold off for Rs 52,000.
(c) The firm had 100 shares of Rs 10 each which were taken over by the partners at market value of Rs 20 per share in their profit – sharing ratio of 3:2.
(d) Realisation expenses of Rs 4,000 were paid by Rina.
(e) Tina had given a loan of Rs 40,000 to the firm which was duly paid.
(f) Rina agreed to pay off her husband’s loan of Rs 10,000 at a discount of 10%.
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18 :- Pass necessary journal entries on dissolution of a firm in the following cases:
(a) Dharam, a partner, was appointed to look after the process of dissolution at a remuneration of Rs 12,000. Dissolution expenses were to be borne b the firm. Dissolution expenses Rs 11,000 were paid by Dharam.
(b) Jay, a partner, was appointed to look after dissolution and was to be paid Rs 15,000, including dissolution expenses. Dissolution expenses Rs 16,000 were paid by Vijay, another partner on behalf of Jay.
(c) Deepa, a partner, was to handle dissolution and for this work she was to be paid Rs 7,000, including dissolution expenses. Dissolution expenses Rs 6,000 were paid from the firm’s bank account.
(d) Dev, a partner, agreed to do the work of dissolution for Rs 7,500. He took stock of the same value as his remuneration. The stock had already been transferred to Realisation account.
(e) Jeev, a partner, agreed to do the work of dissolution for which he was allowed Rs 10,000. He agreed to bear the dissolution expenses. Actual dissolution expenses were paid by Jeev were Rs 12,000. These expenses were paid by Jeev by drawing cash from the firm.