Pass necessary journal entries in the following cases on the dissolution of a partnership firm of partners X, Y, A and B: 

  1. Realization expenses of 5,000 were to borne by X, a partner. However, it was paid by Y. 
  2. Investments costing 25,000 (comprising 1,000 shares), had been written off from the books completely. These shares are valued at 20 each and were divided amongst the partners. 
  3. Y’s loan of 50,000 settled at 48,000. 
  4. Machinery (book value 6,00,000) was given to creditor at a discount of 20%. 

Marks-4, CBSE:2020-21/Sample/Q-17

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