Question 5:
Pass Journal entries for the following:
(a) Firm agreed to pay Alok `7,500 towards dissolution expenses. Dissolution
expenses `10,000, which were paid by the firm.
(b) Realisation
expenses were `5,000. It was agreed that the firm will bear `2,000 and balance
by Ravi, a partner.
(c) Dissolution expenses of
`10,000 were paid by Amit, a partner, on behalf of the firm.
(d) Realisation
expenses up to 6,000 was agreed by the firm to reimburse Ajay. Dissolution
expenses were 7,000.
Answer:
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|
Journal |
||||
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S.N. |
Particulars |
L.F. |
Debits ` |
Credit ` |
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|
(a) |
Realisation A/c |
Dr. |
|
7,500 |
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To Alok’s Capital
A/c |
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|
7,500 |
||
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(Remuneration allowed to Alok) |
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|
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Alok’s capital A/c |
Dr. |
|
10,000 |
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To Bank
A/c |
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|
10,000 |
||
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(Expenses paid by the firm on behalf of Alok) |
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Alternatively,
only one single entry can also be passed instead of above two entries. |
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Realisation A/c |
Dr. |
|
7,500 |
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Alok’s Capital A/c |
Dr. |
|
2,500 |
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To
Bank A/c |
|
|
10,000 |
||
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(Realisation expenses
paid) |
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(b) |
Realisation A/c |
Dr. |
|
5,000 |
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To Ravinder’s
Capital A/c |
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|
3,000 |
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To
Bank A/c |
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|
2,000 |
||
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(Realisation expenses
paid) |
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(c) |
Realisation A/c |
Dr. |
|
10,000 |
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To
Amit’s Capital A/c |
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|
10,000 |
||
|
(Realisation expenses paid
by Amit on behalf of the firm) |
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(d) |
Realisation A/c |
Dr. |
6,000 |
|
|
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To Ajay’s Capital A/c |
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|
6,000 |
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Question 6:
Pass necessary
Journal entries in the following cases:
(a) Creditors worth ` 85,000 accepted `
40,000 as cash and Investment worth ` 43,000,
in full settlement of their claim.
(b) Creditors were
`
16,000. They accepted Machinery valued at `
18,000 in settlement of their claim.
(c) Creditors were
`
90,000. They accepted Building valued at `
1,20,000 and paid cash to the firm ` 30,000.
Answer:
|
Journal |
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||||||
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|
Particulars |
L.F. |
(`) |
(`) |
|||
|
(a) |
Realisation A/c |
Dr. |
|
40,000 |
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||
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To Cash A/c |
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|
40,000 |
||
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(Creditors worth ` 85,000
accepted 40,000 as cash and investment worth ` 43,000 in
full settlement) |
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(b) |
No
Entry |
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(Creditors worth `
16,000 accepted Machinery worth ` 18,000 in
full settlement. No entry as both asset and liability are already transferred
to the Realisation Account) |
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(c) |
Cash A/c |
Dr. |
|
30,000 |
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||
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To Realisation
A/c |
|
|
|
30,000 |
||
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|
(Creditors worth ` 90,000
accepted Building worth ` 1,20,000
and paid back ` 30,000 as cash after settlement of claim to the firm) |
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Question 7: Charu, Dhwani, Iknoor and Paavni were partners
in a firm. They had entered into partnership firm last year only, through a
verbal agreement. They contributed Capitals in the firm and to meet other
financial requirements, few partners also provided loan to the firm. Within a
year, their conflicts arisen due to certain disagreements and they decided to
dissolve the firm. The firm had appointed Ms. Kavya,
who is a financial advisor and legal consultant, to carry on the dissolution
process. In the first instance, Ms. Kavya had
transferred various assets and external liabilities to Realisation
Account. Due to her busy schedule; Ms. Kavya has
delegated this assignment to you, being an intern in her firm. On the date of
dissolution, you have observed the following transactions:
(i)
Dhwani's Loan of `50,000
to the firm was settled by paying `42,000.
(ii) Paavni's
Loan of `40,000 was settled by giving an unrecorded asset of ` 45,000.
(iii) Loan to Charu of `60,000
was settled by payment to Charu's brother loan of the
same amount.
(iv) lknoor's Loan
of ` 80,000 to the firm and she took over Machinery of ` 60,000 as part payment.
You are required to pass
necessary entries for all the above mentioned transactions.
(CBSE Sampe
Paper 2023)
Answer:
|
Date |
Particulars |
|
Dr. (`) |
Cr. (`) |
|
|
Dhwani's Loan A/c |
Dr. |
50,000 |
|
|
|
To Realisation A/c |
|
|
8,000 |
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To Bank A/c |
|
|
42,000 |
|
|
(Being Dhwani’s
loan settled by paying `42,000) |
|
|
|
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Paavni's Loan A/c |
Dr. |
40,000 |
|
|
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To Realisation
A/c |
|
|
40,000 |
|
|
(Being Loan of `40,000 was settled by giving an unrecorded asset of ` 45,000) |
|
|
|
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|
Realisation A/c |
Dr. |
60,000 |
|
|
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To Loan to Charu |
|
|
60,000 |
|
|
(Being Loan to Charu settled by payment to Charu's
brother loan) |
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|
|
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lknoor's Loan A/c |
Dr. |
80,000 |
|
|
|
To Realisation A/c |
|
|
60,000 |
|
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To Bank A/c |
|
|
20,000 |
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(Being Loan to the firm and
she took over Machinery) |
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Question 8:
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) Employees provident fund `10,000,
(f) 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.
(g) Investment (Book Value `10,000)
realised at 150%.
(h) Realisation expenses
were `10,000. The firm had
agreed with krishan a partner, to reimburse him up to
` 7,500.
Answer:
|
Journal |
|||||
|
S.N. |
Particulars |
L.F. |
Debits ` |
Credit ` |
|
|
(a) |
Cash A/c |
Dr. |
|
50,000 |
|
|
To Realisation A/c |
|
|
50,000 |
||
|
(Assets realized for cash) |
|
|
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||
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(b) |
Realisation A/c |
Dr. |
|
10,000 |
|
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To
Cash A/c |
|
|
10,000 |
||
|
(Payment of liabilities made) |
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|
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(c) |
Realisation A/c |
Dr. |
|
2,500 |
|
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To
X’s Capital A/c |
|
|
2,500 |
||
|
(5% commission allowed to Mr. X’s on sale of assets
of ` 50,000) |
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|
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||
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(d)() (e) |
Realisation A/c |
Dr. |
|
10,000 |
|
|
To Amrit’s Capital A/c |
|
|
10,000 |
||
|
(Amrit was allowed
remuneration on account of realisation) |
|
|
|
||
|
Amrit’s Capital A/c |
Dr. |
|
15,000 |
|
|
|
To
Cash A/c |
|
|
15,000 |
||
|
(Realisation expenses paid
on behalf of amrit) |
|
|
|
||
|
Alternatively,
only one single entry can also be passed instead of above two entries. |
|
|
|
||
|
Realisation A/c |
Dr. |
|
10,000 |
|
|
|
Amrit’s Capital A/c |
Dr. |
|
5,000 |
|
|
|
To Cash A/c |
|
|
15,000 |
||
|
(Realisation expenses
paid) |
|
|
|
||
|
|
|
|
|
||
|
Realization A/c Dr. |
|
|
|
||
|
To Cash A/c |
|
|
|
||
|
(Paid provident fund) |
|
|
|
||
|
|
|
|
|
||
|
(f) |
Cash A/c |
Dr. |
|
3,600 |
|
|
To Realisation
A/c |
|
|
3,600 |
||
|
(60% of the Bad debts against Z an old
customer now recovered) |
|
|
|
|
|
|
|
|
|
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|
(g) |
Cash A/c |
Dr. |
|
15,000 |
|
|
To Realisation A/c |
|
|
15,000 |
||
|
|
(Investments are realised
at 150%) |
|
|
|
|
|
|
|
|
|
|
|
|
(h) |
Realisation A/c |
|
7,500 |
|
|
|
|
To Krishna’s
Capital A/c |
|
|
7,500 |
|
|
|
(Krishna, a partner, reimbursed for realization
expenses) |
|
|
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Ts Grewal Solution 2024-2025
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Class 12 / Volume – I