Salman and Amir were partners in a firm sharing profit in the ratio of

1.	Salman and Amir were partners in a firm sharing profit in the ratio of 2 : 3. On 31st March, 2011, their Balance Sheet was as follows: BALANCE SHEET as on 31st March, 2011 LiabilitiesAmount AssetsAmount(Rs)(Rs)Capitals:Land and Building3,00,000 Salman2,00,000Stock1,00,000 Amir3,00,000––––––––––5,00,000Debtors1,50,000Creditors1,05,000Bank1,55,000Workmen Compensation Fund1,00,000¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯7,05,000¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯7,05,000 The firm was dissolved on 1-4-2011 and the Assets and Liabilities were settled as follows: (i) Salman agreed to take over Land and Building at Rs 3,50,000 by paying cash. (ii) Stock was sold for Rs 90,000. (iii) Creditors accepted debtors in full settlement of their claim. Pass necessary Journal entries for dissolution of the firm.
Answer» Salman and Amir were partners in a firm sharing profit in the ratio of 2 : 3. On 31st March, 2011, their Balance Sheet was as follows: BALANCE SHEET as on 31st March, 2011 $\begin{matrix} Liabilities & Amount & Assets & Amount (Rs) & (Rs) Capitals: & Land and Building & 3, 00, 000 Salman & 2, 00, 000 & Stock & 1, 00, 000 Amir & 3, 00, 000 - -------- - & 5, 00, 000 & Debtors & 1, 50, 000 Creditors & 1, 05, 000 & Bank & 1, 55, 000 Workmen Compensation Fund & 1, 00, 000 ¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯ 7, 05, 000 & ¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯ 7, 05, 000 \end{matrix}$ The firm was dissolved on 1-4-2011 and the Assets and Liabilities were settled as follows: (i) Salman agreed to take over Land and Building at Rs 3,50,000 by paying cash. (ii) Stock was sold for Rs 90,000. (iii) Creditors accepted debtors in full settlement of their claim. Pass necessary Journal entries for dissolution of the firm.

Salman and Amir were partners in a firm sharing profit in the ratio of 2 : 3. On 31st March, 2011, their Balance Sheet was as follows: BALANCE SHEET as on 31st March, 2011 LiabilitiesAmount AssetsAmount(Rs)(Rs)Capitals:Land and Building3,00,000 Salman2,00,000Stock1,00,000 Amir3,00,000––––––––––5,00,000Debtors1,50,000Creditors1,05,000Bank1,55,000Workmen Compensation Fund1,00,000¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯7,05,000¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯7,05,000 The firm was dissolved on 1-4-2011 and the Assets and Liabilities were settled as follows: (i) Salman agreed to take over Land and Building at Rs 3,50,000 by paying cash. (ii) Stock was sold for Rs 90,000. (iii) Creditors accepted debtors in full settlement of their claim. Pass necessary Journal entries for dissolution of the firm.

Answer»

Salman and Amir were partners in a firm sharing profit in the ratio of 2 : 3. On 31st March, 2011, their Balance Sheet was as follows:
BALANCE SHEET
as on 31st March, 2011
$\begin{matrix} Liabilities & Amount & Assets & Amount (Rs) & (Rs) Capitals: & Land and Building & 3, 00, 000 Salman & 2, 00, 000 & Stock & 1, 00, 000 Amir & 3, 00, 000 - -------- - & 5, 00, 000 & Debtors & 1, 50, 000 Creditors & 1, 05, 000 & Bank & 1, 55, 000 Workmen Compensation Fund & 1, 00, 000 ¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯ 7, 05, 000 & ¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯ 7, 05, 000 \end{matrix}$

The firm was dissolved on 1-4-2011 and the Assets and Liabilities were settled as follows:

(i) Salman agreed to take over Land and Building at Rs 3,50,000 by paying cash.

(ii) Stock was sold for Rs 90,000.

(iii) Creditors accepted debtors in full settlement of their claim.

Pass necessary Journal entries for dissolution of the firm.

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