question_answer

Pass the necessary journal entries for the following transactions on the dissolution of firm of Anju, Manju and Sanju (who were sharing profits in the ratio of 2 : 2 :1) after the  transfer of all assets (other than cash) and external liabilities to realisation account.

(i) Debtors were of Rs. 62,100. Anju takes over debtors amounted to Rs. 60,000 at Rs. 58,600 and the remaining debtors were sold to a debt collecting agency at 50% of the value.

(ii) Sundry assets were of Rs. 58,500. Manju is to take over some sundry assets at Rs. 36,000 (being 10% less than the book value). Sanju is to take over remaining sundry assets at 80% of the book value.

(iii) Sanju assumes the responsibility of discharge of Mrs Sanju's loan of Rs. 5,750 together with accrued interest of Rs. 1,150.

Answer:

                                                                                    JOURNAL

Date	Particulars		LF	Amt (Dr)	Amt (Cr)
(i)	Anju's Capital A/c	Dr		58,600
	To Realisation A/c				58,600
	(Being some debtors taken over by Anju)
	Cash/Bank A/c \[\left[ \left( 62,100-60,000 \right)\times 50/100 \right]\]	Dr		1,050
	To Realisation A/c				1,050
	(Being the remaining debtors sold to a debt collecting agency)
(ii)	Manju's Capital A/c	Dr		36,000
	To Realisation A/c				36,000
	(Being sundry assets of value Rs. \[Rs.\,40,000\left( 36,000\times \frac{100}{90} \right)\] taken over by Manju at Rs. 36,000)
	Sanju's Capital A/c \[\left[ \left( 58,500-40,000 \right)\,\times \,80/100 \right]\]	Dr		14,800
	To Realisation A/c				14,800
	(Being the remaining sundry assets taken over by Sanju)
(iii)	Realisation A/c	Dr		6,900
	To Sanju's Capital A/c (5,750 + 1,150)				6,900
	(Being Mrs Sanju's loan paid by Sanju)