1.

Pass Journal entries for the following at the time of dissolution of a firm:(a) Sale of Assets − ₹ 50,000.(b) Payment of Liabilities − ₹ 10,000.(c) A commission of 5% allowed to Mr. X, a partner, on sale of assets.(d) Realisation expenses amounted to ₹ 15,000. The firm had agreed with Amrit, a partner, to reimburse him up to ₹ 10,000.(e) Z, an old customer, whose account for ₹ 6,000 was written off as bad in the previous year, paid 60% of the amount written off.(f) Investment (Book Value ₹ 10,000) realised at 150%.

Answer» Pass Journal entries for the following at the time of dissolution of a firm:

(a) Sale of Assets − ₹ 50,000.

(b) Payment of Liabilities − ₹ 10,000.

(c) A commission of 5% allowed to Mr. X, a partner, on sale of assets.

(d) Realisation expenses amounted to ₹ 15,000. The firm had agreed with Amrit, a partner, to reimburse him up to ₹ 10,000.

(e) Z, an old customer, whose account for ₹ 6,000 was written off as bad in the previous year, paid 60% of the amount written off.

(f) Investment (Book Value ₹ 10,000) realised at 150%.


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