CBSE 2025, Set 1

Question

Pass the necessary journal entries for the following transactions on the dissolution of a partnership firm of Vibha and Ajit after various assets (other than cash) and external liabilities have been transferred to Realisation Account:
(i) Creditors worth ₹ 46,000 accepted ₹ 9,000 cash and furniture of ₹ 32,000 in full settlement of their claim.
(ii) The firm had stock of ₹ 20,000. Ajit took over 40% of the stock at a discount of 10% while the remaining stock was sold for ₹ 18,000.
(iii) Vibha was appointed to look after dissolution work for which she was allowed a remuneration of ₹ 16,000. Vibha agreed to bear the dissolution expenses. Actual dissolution expenses ₹ 15,000 were paid by Vibha.
(iv) Ajit's loan of ₹ 45,000 was settled at ₹ 42,000.
(v) A machine which was not recorded in the books was taken over by Vibha at ₹ 23,000, whereas its expected value was ₹ 28,000.
(vi) The firm had a debit balance of ₹ 20,000 in the Profit and Loss Account on the date of dissolution.

Edvaya · Accepted Answer

The correct answer is Subjective. **Books of Vibha and Ajit - Journal** | Date | Particulars | L.F. | Dr. Amount (₹) | Cr. Amount (₹) | |---|---|---|---|---| | (i) | Realisation A/c ...Dr.     To Cash A/c (Creditors accepted cash and furniture in full settlement of their claim) | | 9,000 | 9,000 | | (ii) | Ajit's Capital A/c ...Dr. Cash/Bank A/c ...Dr.     To Realisation A/c (40% stock taken by Ajit at 10% discount: 8k-800=7200, remaining sold for 18k) | | 7,200 18,000 | 25,200 | | (iii) | Realisation A/c ...Dr.     To Vibha's Capital A/c (Vibha allowed remuneration for dissolution work. Note: 15k personal payment is not recorded) | | 16,000 | 16,000 | | (iv) | Ajit's Loan A/c ...Dr.     To Cash/Bank A/c     To Realisation A/c (Ajit's loan settled) | | 45,000 | 42,000 3,000 | | (v) | Vibha's Capital A/c ...Dr.     To Realisation A/c (Unrecorded machinery taken over by Vibha) | | 23,000 | 23,000 | | (vi) | Vibha's Capital A/c ...Dr. Ajit's Capital A/c ...Dr.     To Profit and Loss A/c (Debit balance of P&L debited to partners equally) | | 10,000 10,000 | 20,000 |

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Accountancy > Accounting For Partnership Firms > Dissolution Of Partnership Firm

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