Pass necessary Journal entries for the following transactions in the books of X , Y and Z sharing profits in the ratio of 3 : 2 : 1 at the time of dissolution of the firm . (i) Realisation expenses of ₹ 2,000 were to be borne by and also paid by X , partner . (ii) Y, a partner to bear realisation expenses agreed at ₹ 1,900 . Actual expenses paid by Y were ₹ 1,500 . There was a balance of ₹ 18,000 in the General Reserve on the date of dissolution . (iv) Y was given loan of ₹ 50,000 by the firm . (v) Y , a partner , took a machine for ₹ 20, 000 . (vi) Z , a partner , agreed to pay creditor of ₹ 30 , 000 for ₹ 20,000 . (vii) A , a partner , had given loan to the firm of ₹ 10 , 000 . It was repaid to him . (viii) There was a contingent liability of ₹ 37,000 in respect of bills discounted but not matured . All the discounted bills were honoured but an acceptor of a bill of ₹ 5,000 became insolvent and fifty paise in a rupee was received . The liability of the firm account of this bill discounted and dishonoured has not so far been recorded .

Pass necessary Journal entries for the following transactions in the b

1.	Pass necessary Journal entries for the following transactions in the books of X , Y and Z sharing profits in the ratio of 3 : 2 : 1 at the time of dissolution of the firm . (i) Realisation expenses of ₹ 2,000 were to be borne by and also paid by X , partner . (ii) Y, a partner to bear realisation expenses agreed at ₹ 1,900 . Actual expenses paid by Y were ₹ 1,500 . There was a balance of ₹ 18,000 in the General Reserve on the date of dissolution . (iv) Y was given loan of ₹ 50,000 by the firm . (v) Y , a partner , took a machine for ₹ 20, 000 . (vi) Z , a partner , agreed to pay creditor of ₹ 30 , 000 for ₹ 20,000 . (vii) A , a partner , had given loan to the firm of ₹ 10 , 000 . It was repaid to him . (viii) There was a contingent liability of ₹ 37,000 in respect of bills discounted but not matured . All the discounted bills were honoured but an acceptor of a bill of ₹ 5,000 became insolvent and fifty paise in a rupee was received . The liability of the firm account of this bill discounted and dishonoured has not so far been recorded .
Answer» SOLUTION : Note : When it is AGREED that a partner will bear the realisation EXPENSES and for this he is PAID an agreed amount Realisation ACCOUNT is debited by the amount payable to the partner.

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