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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.

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(a) Dr. Realisation A/c and Cr. Cash A/c by ₹ 40,000 .
(b) No Entry.
(c) Dr. Cash A/c and Cr. Realisation A/c by ₹ 30,000.
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L and M were partners in a firm sharing profits in the ratio of 2 : 2 : 3 . On 28th February , 2016 the firm was dissolved . After transferrring assets (other than cash) and outsiders' liabilities to Realisation Account you are given the following information : (i) A creditors for ₹ 1, 40 , 000 accepted building valued at ₹ 1, 80 , 000 and paid to the firm ₹ 40 , 000 . (ii) A second creditor for ₹ 30 , 000 accepted machinery valued at ₹ 28 ,000 in full settlement of his claim . (iii) A third creditor amounting to ₹ 70 , 000 accepted ₹ 30 , 000 in cash and investments of the book value of ₹ 45, 000 in full settlement of his claim . (iv) Loss on dissolution was ₹ 4,000 . Pass necessary Journal entries for the above transactions in the books of the firm assuming that all payments were made by cheque .

Lal and Pal were partners in a firm sharing profits in the ratio of 3: 7 . On 1st April 2015 , their firm was dissolved . After transferring assets (other than cash ) and outsider's liabilities to Realisation Account , you are given the following information : (a) A creditor of ₹ 3,60,000 accepted machinery valued at ₹ 5,00,000 and paid to the firm ₹ 1,40 ,000 . (b) A second creditor for ₹ 50,000 accepted stock at ₹ 45,000 in full settlement of his claim. (c) A third creditor amounting to ₹ 90,000 accepted ₹ 45,000 in cash and investments worth ₹ 43,000 in full settlement of his claim . (d) Loss on dissolution was ₹ 15,000. Pass necessary Journal entries for the above transactions in the books of firm assuming that all payments were made by cheque.

There are two partners X and Y in a firm and their capitals are ₹ 50,000 and ₹ 40,000 . The creditors are ₹ 30,000 . The assets of the firm realise ₹ 1,00,000 . How much will X and Y receive ?

Rohit , Kunal and Sarthak are partners in a firm . They decided to dissolve their firm . Pass necessary Journal entries for the following after various assets (other than Cash and Bank) and the third party liability have been transferred to Realisation Account : (a) Kunal agreed to pay off his wife's loan of ₹ 6,000 . (b) Total Creditors of the firm were ₹ 40,000 . Creditors worth ₹ 10,000 were given a piece of furniture costing ₹ 8,000 in full and final settlement . Remaining Creditors allowed a discount of 10% . (c) Rohit had given a loan of ₹ 70,000 to the firm which was duly paid. (d) A machine which was not recorded in the books was taken over by Kunal at ₹ 3,000 , whereas its expected value was ₹ 5,000 . (e) The firm had a debit balance of ₹ 15,000 in the Profit and Loss Account on the date of dissolution . (f) Sarthak paid the realisation expenses of ₹ 16,000 out of his private funds , who was to get a remuneration of ₹ 15,000 for completing dissolution process and was responsible to bear all the realisation expenses.

Prepare Accounting Equation on the basis of the following transactions : (a) Started business with cash Rs. 70,000. (b) Credit purchase of good Rs. 18,000. (c ) Payment made to creditors in full settlement Rs. 17,500. (d) Purchase of machinery for cash Rs. 20,000.

X and Y were partners sharing profits and losses in the ratio of 3 : 2 . They decided to dissolve the firm on 31st March , 2019 . On that date , their Capitals were X - ₹ 40,000 and Y - ₹ 30,000 . Creditors amounted to ₹ 24,000 . Assets were realised for ₹ 88,500 . Creditors of ₹ 16,000 were taken over by X at ₹ 14,000 . Remaining Creditors were paid at ₹ 7,500 . The cost of realisation came to ₹ 500 . Prepare necessary accounts .

The firm of R, K and S was dissolved on 31.3.2019. Pass necessary journal entries for the following after various assets (other than cash and Bank) and the third party liabilities had been transferred to realisation account. (i) K agreed to pay off his wife’s loan of ₹ 6,000. (ii) Total Creditors of the firm were ₹ 40,000. Creditors worth ₹10,000 were given a piece of furniture costing ₹8,000 in full and final settlement. Remaining creditors allowed a discount of 10%. (iii) A machine that was not recorded in the books was taken over by K at ₹ 3,000 whereas its expected value was ₹ 5,000. (iv) The firm had a debit balance of ₹ 15,000 in the profit and loss A/c on the date of dissolution.

TS GREWAL-DISSOLUTION OF A PARTNERSHIP FIRM-Exercise
  1. Pass the Journal entries in the following cases ? (a) Expenses of re...

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  2. Pass Journal entries for the following : (a) Realisation expenses of...

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  3. Pass Journal entries for the following : (a) Realisation expenses am...

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  4. Record necessary Journal entries in the following cases : (a) Credit...

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  5. Pass Journal entries for the following at the time of dissolution of f...

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  6. Pass Journal entries for the following transactions at the time of dis...

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  7. Pass necessary Journal entries for the following transactions on the d...

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  8. X , Y and Z are partners in a firm sharing profits in the ratio of 3 ...

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  9. Pass necessary Journal entries to record the following unrecorded asse...

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  10. Aman and Harsh were partners in a firm . They decided to dissolve thei...

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  11. Rohit , Kunal and Sarthak are partners in a firm . They decided to dis...

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  12. Book Value of assets (other than cash and bank ) transferred to Realis...

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  13. Lal and Pal were partners in a firm sharing profits in the ratio of 3:...

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  14. Pass the Journal entries for the following transactions on the dissolu...

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  15. What Journal entries would be passed for discharge of following unreco...

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  16. Pass the necessary Journal entries on the dissolution of a firm in the...

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