question_answer

Pass the necessary journal entries for the following transactions on the dissolution of firm of Anju, Bobby and Chetan (who were sharing profits in the ratio of 4 : 3 : 3) after the transfer of all assets (other than cash) and external liabilities to realisation account.

(i) Kapil, a creditor, to whom Rs. 3,000 were due to be paid, accepted office equipment Rs. 2,000 and the balance was paid to him in cash.

(ii) Lata a creditor, to whom Rs. 8,000 were due to be paid, took over machinery at Rs. 10,000.Balance was paid by him in cash.

(iii) Manish, an unrecorded creditor of Rs. 4,500 was paid by Anju at a discount of 10%.

(iv) The amount of sundry liabilities (including creditors) was Rs. 1,00,000 appearing in the balance sheet, paid off in full.

(v) An unrecorded computer of Rs. 2,500 was taken over by Bobby at discount of 10%.

(vi) Chetan's loan of Rs. 5,000 was discharged along with accrued interest of Rs. 100 (Not yet recorded).

Answer:

                                                                        JOURNAL

Date	Particulars		LF	Amt (Dr)	Amt (Cr)
(i)	Realisation A/c	Dr		1,000
	To Cash A/c (3,000 - 2,000)				1,000
	(Being cash paid to a creditors)
(ii)	Cash A/c (10,000 ? 8,000)	Dr		2,000
	To Realisation A/c				2,000
	(Being cash received from a creditors)
(iii)	Realisation A/c	Dr		4,050
	To Anju's Capital A/c\[\left( 4,500\times 90% \right)\]				4,050
	(Being an unrecorded liability taken over by Anju at a discount of 10%)
(iv)	Realisation A/c	Dr		89,000
	To Bank A/c				89,000
	(Being the payment made to remaining creditors, i.e. Rs. 1,00,000 ? Rs. 3,000 ? Rs. 8,000)
(v)	Bobby's Capital A/c \[\left( 2,500\times 90% \right)\]	Dr		2,250
	To Realisation A/c				2,250
	(Being an unrecorded asset taken over by Bobby at a discount of 10%)
(vi)	Chetan's Loan A/c	Dr		5,000
	Realisation A/c	Dr		100
	To Bank A/c				5,100
	(Being Chetan's loan discharged along with accrued interest)