Question 1:
Land and Building (book value) ` 1,60,000 sold for ` 3,00,000 through a broker who charged 2% commission on the deal. Journalise the transaction, at the time of dissolution of the firm.
Answer:
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In the books of the firm Journal |
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Date |
Particulars |
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L.F. |
Debit ( `) |
Credit ( `) |
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On the |
Cash/
Bank A/c (3,00,000 – 6,000) |
Dr. |
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2,94,000 |
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Date of |
To Realisation A/c (3,00,000 – 6,000) |
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2,94,000 |
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Dissolution |
(Being
amount realized from land and building after providing for 2% commission to
the broker) |
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Question 2: (a) What Journal entry will be passed when an unrecorded liability of ` 15,000 is settled at ` 10,000 and paid by X, a partner on the dissolution of a firm?
(b) What Journal entry will be passed when a machine having a book value off ` 15,000 is given to Rakesh, a creditor of ` 22,000 at an agreed valuation of ` 12,000 towards partial payment of his dues?
Answer:
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Date |
Particulars |
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`
(Dr.) |
`
(Cr.) |
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(a) |
Realisation A/c |
Dr. |
10,000 |
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To X's Capital A/c |
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10,000 |
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(b) |
Realisation A/c |
Dr. |
10,000 |
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To Cash/Bank A/c |
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10,000 |
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Question 3:
Pass Journal
entries in the following cases?
(a) Expenses of realisation `600 but paid by
Mohan, a partner.
(b) Mohan, one of the partners of the firm, was asked to look into the
dissolution of the firm for which he was allowed a commission of ` 2,000.
(c) Motor car of book value `
50,000 taken over by Creditors of the
book value of ` 40,000 in full
settlement.
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. |
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600 |
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To Mohan’s Capital A/c |
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600 |
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(Being Realisation expenses paid by Mohan) |
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(b) |
Realisation A/c |
Dr. |
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2,000 |
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To Mohan’s capital A/c |
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2,000 |
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(Being Commission allowed to Mohan on dissolution of the firm) |
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(c) |
No entry No journal entry is passed because both motor car and Creditors accounts have already been transferred to Realisation Account and nothing is recovered or paid in terms of Cash and Bank |
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Question 4:
Pass Journal entries for the following:
(a) Realisation expenses of `10,000 were to be met by Mohan, a partner, but were paid by the firm.
(b) Mahesh, a partner, was paid remuneration of `25,000 and he was to meet all expenses.
(c) Suresh, a partner, was paid remuneration of `20,000 and he was to meet all expenses. Firm paid an expense of ` 5,000..
Answer:
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Date |
Particulars |
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`
(Dr.) |
`
(Cr.) |
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(a) |
Mohan'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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(Realisation expenses were to be met by Mohan, a partner, but were paid by the firm) |
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(b) |
Realisation A/c |
Dr. |
10,000 |
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To Mohan's Capital A/c |
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10,000 |
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(Mahesh, a partner, was paid remuneration and he was to meet all expenses) |
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(c) |
Suresh's Capita A/c |
Dr. |
5,000 |
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To Bank A/c |
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5,000 |
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(Suresh, a partner, was paid remuneration of and he was to meet all expenses. Firm paid an expense) |
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Ts Grewal Solution 2023-2024
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Class 12 / Volume – I