CBSE 2025, Compartment, Set 1

Question

Pass necessary journal entries for the following transactions on the dissolution of the partnership firm of Banu, Bansal and Bimal after various assets (other than cash) and external liabilities have been transferred to Realisation Account:
(i) The firm had a balance of ₹4,80,000 in General Reserve on the date of dissolution.
(ii) Banu had given a loan of ₹80,000 to the firm which was fully settled at ₹78,000.
(iii) Realisation expenses of ₹17,000 were paid by Bansal.

Edvaya · Accepted Answer

The correct answer is Subjective. **Journal Entries in the books of the Firm** | Date | Particulars | L.F. | Dr. Amount (₹) | Cr. Amount (₹) | |---|---|---|---|---| | (i) | General Reserve A/c Dr. To Banu's Capital A/c To Bansal's Capital A/c To Bimal's Capital A/c *(General reserve distributed among the partners in equal ratio, assuming equal ratio in absence of info)* | | 4,80,000 | 1,60,000 1,60,000 1,60,000 | | (ii) | Banu's Loan A/c Dr. To Bank A/c / Cash A/c To Realisation A/c *(Banu's loan fully settled at ₹78,000; the benefit of ₹2,000 transferred to Realisation)* | | 80,000 | 78,000 2,000 | | (iii)| Realisation A/c Dr. To Bansal's Capital A/c *(Realisation expenses paid by Bansal)* | | 17,000 | 17,000 |

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Accountancy > Accounting For Partnership Firms > Dissolution Of Partnership Firm

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