Question
Lalit and Madan were partners in a firm sharing profits and losses in the ratio of 7: 3. On 31st March, 2024 their firm was dissolved. After transferring sundry assets (other than cash) and third-party liabilities to Realisation Account, the following transactions took place:
- The firm had stock of ₹2,00,000. 40% of this stock was taken over by a creditor of ₹1,00,000 in full settlement of his claim. The remaining stock was sold at a loss of 10%.
- The remaining creditors were paid ₹2,10,000.
- Plant and Machinery of ₹5,00,000 were accepted by Mrs. Madan against the settlement of her loan of ₹5,40,000.
- Debtors of ₹3,50,000 were sold to a debt collection agency who charged a commission of ₹25,000.
- Investments of ₹1,00,000 were taken over by the partners in their profit-sharing ratio.
- Expenses of dissolution were ₹8,000.
Pass necessary journal entries for the above transactions in the books of the firm.
Marks-6, CBSE: 2024-25/Zone-6/Set-1/Q-25
Answer :
