Vasudha and Dewan were partners in a firm sharing profits and losses in the ratio of 2 : 3. The firm was dissolved on 31st March, 2019. After transfer of assets (other than cash) and external liabilities to Realization Account, the following transactions took place :

  1. Investments of the face value of Rs. 60,000 were sold in the open market for Rs. 63,000 for which a commission of Rs. 700 was paid to the broker.
  2. Creditors worth Rs. 65,000 were settled by handing over the entire stock to them along with a payment of Rs. 23,000 by cheque.
  3. There was old furniture which had been completely written off from the books of the firm. It was taken over by Vasudha at Rs. 2,000.
  4. Dewan undertook to pay Ms. Dewan’s loan of Rs. 45,000.
  5. Dewan was appointed to look after the process of dissolution for which he was allowed a remuneration of Rs. 7,000. He agreed to bear the dissolution expenses. Actual expenses incurred by Dewan were Rs. 11,000, which were paid by the firm.
  6. Loss on realisation amounted to Rs. 9,000.

Pass the necessary journal entries to record the above transactions in the books of the firm. 

Marks-6, CBSE:2019-20/Main/03/Q-19

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