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Pass the necessary Journal entries for the following transactions on the dissolution of the firm of P and Q after the various assets (other than cash) and outside liabilities have been transferred to Realisation Account. (i) Bank loan Rs 12,000 was paid. (ii) Stock worth Rs 16,000 was taken over by partners. (iii) Partner P paid a creditor Rs 4,000. (iv) An asset not appearing in the books of accounts realised Rs 1,200. (v) Expenses of realisation Rs 2,000 were paid by partner Q. (iv) Profit on realisation Rs 36,000 was distributed between P and Q in 5 : 4 ratio. |
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Answer» Pass the necessary Journal entries for the following transactions on the dissolution of the firm of P and Q after the various assets (other than cash) and outside liabilities have been transferred to Realisation Account. (i) Bank loan Rs 12,000 was paid. (ii) Stock worth Rs 16,000 was taken over by partners. (iii) Partner P paid a creditor Rs 4,000. (iv) An asset not appearing in the books of accounts realised Rs 1,200. (v) Expenses of realisation Rs 2,000 were paid by partner Q. (iv) Profit on realisation Rs 36,000 was distributed between P and Q in 5 : 4 ratio. |
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