6 :- Pass journal entries for the following :
(a) Realisation expenses of Rs 10,000 were to be borne by Raman, a partner, but were paid by the firm.
(b) Mahesh, a partner, was paid Rs 25,000 and he was to bear the expenses.
(c) Suresh, a partner, was paid Rs 20,000 and he was to bear the expenses. Firm paid an expenses of Rs 5,000.
7 :- Pass journal entries for the following :
(a) Firm agreed to pay Alok Rs 7,500 towards dissolution expenses. Dissolution expenses were Rs 10,000, which were paid by the firm.
(b) Realisation expenses were Rs 5,000. It was agreed that the firm will bear Rs 2,000 and balance by Ravi, a partner.
(c) Dissolution expenses of Rs 10,000 were paid by Amit, a partner, onbehalf of the firm.
(d) Realisation expenses upto Rs 6,000 was agreed by the firm to reimburse Ajay. Dissolution expenses were Rs 7,000.
8 :- Pass necessary journal entries in the following cases:
(a) Creditors of Rs 85,000 accepted Rs 40,000 in cash and Investment of Rs 43,000 in full settlement of their claim.
(b) Creditors were Rs 16,000. They accepted Machinery valued at Rs 18,000 in settlement of their claim.
(c) Creditors were Rs 90,000. They accepted Building valued at Rs 1,20,000 and paid cash to the firm Rs 30,000.
9 :- Charu, Dhwani, Iknoor and Paavni were partners in a firm. They had entered into partnership firm last year only, through a verbal agreement. They contributed Capitals in the firm and to meet other financial requirements, few partners also provided to the firm. Within a year, their conflict arisen due to certain disgreements and they decided to dissolve the firm. The firm had appointed Ms. Kavya who is a financial advisor and legal consultant , to carry on the dissolution process. In the first instance, Ms Kavya had transferred various assets and external liabilities to Realisation account. Due to her busy schedule, Ms Kavya has delegated this assignment to you, being an intern in her firm. On the date of dissolution, you have observed the following transactions :
(i) Dhwani’s loan of Rs 50,000 to the firm was settled by paying Rs 42,000.
(ii) Paavi’s loan of Rs 40,000 was settled by giving an unrecorded asset of Rs 45,000.
(iii) Loan to Charu of Rs 60,000 was settled against Charu’s brother loan of the same amount.
(iv) Iknoor’s loan of Rs 80,000 to the firm and she took over machinery of Rs 60,000 as part payment.
You are required to pass necessary entries for all the above mentioned transactions.
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.