Question 5:
Pass Journal entries for the following:
(a) Realisation expenses amounted to ` 10,000 were paid by the firm on behalf of Alok, a partner, with
whom it was agreed at
` 7,500.
(b) Realisation expenses amounted to ` 5,000. It was agreed that the firm will pay ` 2,000 and balance by
Ravinder, a partner.
(c) Dissolution expenses amounted to ` 10,000 were paid
by Amit, a partner, on behalf of the firm.
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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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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Alok’s capital A/c |
Dr. |
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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. |
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7,500 |
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Alok’s Capital A/c |
Dr. |
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2,500 |
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To Bank A/c |
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10,000 |
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(Realisation expenses paid) |
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(b) |
Realisation A/c |
Dr. |
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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. |
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10,000 |
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To Amit’s Capital A/c |
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10,000 |
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(Realisation expenses paid by Amit on behalf of the firm) |
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Question 6:
Record 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:
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Journal |
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||||||
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Particulars |
L.F. |
(
`) |
(
`) |
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(a) |
Realisation A/c |
Dr. |
|
40,000 |
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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. |
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30,000 |
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To Realisation A/c |
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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:
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:
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Journal |
|||||
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S.N. |
Particulars |
L.F. |
Debits ` |
Credit ` |
|
|
(a) |
Cash A/c |
Dr. |
|
50,000 |
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To Realisation A/c |
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|
50,000 |
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(Assets realized for cash) |
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(b) |
Realisation A/c |
Dr. |
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10,000 |
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To Cash A/c |
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10,000 |
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(Payment of liabilities made) |
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(c) |
Realisation A/c |
Dr. |
|
2,500 |
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To X’s Capital A/c |
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|
2,500 |
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(5% commission allowed to Mr. X’s on sale of assets of ` 50,000) |
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(d)() (e) |
Realisation A/c |
Dr. |
|
10,000 |
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To Amrit’s Capital A/c |
|
|
10,000 |
||
|
(Amrit was allowed remuneration on account of realisation) |
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Amrit’s Capital A/c |
Dr. |
|
15,000 |
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To Cash A/c |
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|
15,000 |
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(Realisation expenses paid on behalf of amrit) |
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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. |
|
10,000 |
|
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Amrit’s Capital A/c |
Dr. |
|
5,000 |
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To Cash A/c |
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|
15,000 |
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(Realisation expenses paid) |
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Realization A/c Dr. |
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To Cash A/c |
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(Paid provident fund) |
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(f) |
Cash A/c |
Dr. |
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3,600 |
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To Realisation A/c |
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3,600 |
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(60% of the Bad debts against Z an old customer now recovered) |
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(g) |
Cash A/c |
Dr. |
|
15,000 |
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To Realisation A/c |
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15,000 |
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(Investments are realised at 150%) |
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(h) |
Realisation A/c |
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7,500 |
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To Krishna’s Capital A/c |
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|
7,500 |
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(Krishna, a partner, reimbursed for realization expenses) |
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Question 8: The firm of Manjeet, Sujeet and Jagjeet was dissolved on 31st March,
2018. It was agreed that Sujeet will take care of the dissolution related
activities and will get 10% of the value of assets realised. Sujeet agreed to
bear the realisation expenses. Assets realised 10,00,750 and realisation
expenses were 90,000, which were paid from the firm's cash. 4,50,000 were paid
to the creditors in full settlement of their claim.
Pass
necessary Journal entries for the above transactions in the books of the firm.
(CBSE 2019)
Answer:
|
|
Journal |
||||
|
S.N. |
Particulars |
L.F. |
Debits ` |
Credit ` |
|
|
(a) |
Bank A/c |
Dr. |
|
10,00,750 |
|
|
To Realisation A/c |
|
|
10,00,750 |
||
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(Being assets realized on dissolution) |
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(b) |
Realisation A/c |
Dr. |
|
1,00,075 |
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To Sujeet’s Capital A/c |
|
|
1,00,075 |
||
|
(Being 10% of assets realized on dissolution) |
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(c) |
Sujeet’s Capital A/c |
Dr. |
|
90,000 |
|
|
To Bank A/c |
|
|
90,000 |
||
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(Being realization expenses paid) |
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|
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(d) |
Realisation A/c |
Dr. |
|
4,50,000 |
|
|
To Bank A/c |
|
|
4,50,000 |
||
|
(Being creditors paid in full settlement on dissolution) |
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Ts Grewal Solution 2022-2023
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Class 12 / Volume – I
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