1.

Pass necessary Journal entries for the following transactions on the dissolution of the firm P and Q after the various assets (other than cash) and outside liabilities have been transferred to Realisation Account:(a) Bank Loan ₹ 12,000 was paid.(b) Stock worth ₹ 16,000 was taken over by partner Q.(c) Partner P paid a creditor ₹ 4,000.(d) An asset not appearing in the books of accounts realised ₹ 1,200.(e) Expenses of realisation ₹ 2,000 were paid by partner Q.(f) Profit on realisation ₹ 36,000 was distributed between P and Q in 5 : 4 ratio.

Answer» Pass necessary Journal entries for the following transactions on the dissolution of the firm P and Q after the various assets (other than cash) and outside liabilities have been transferred to Realisation Account:

(a) Bank Loan ₹ 12,000 was paid.

(b) Stock worth ₹ 16,000 was taken over by partner Q.

(c) Partner P paid a creditor ₹ 4,000.

(d) An asset not appearing in the books of accounts realised ₹ 1,200.

(e) Expenses of realisation ₹ 2,000 were paid by partner Q.

(f) Profit on realisation ₹ 36,000 was distributed between P and Q in 5 : 4 ratio.


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