Pass the necessary journal entries for the following transactions in case of dissolution of the partnership firm of X and Y after various assets (other than cash and bank) and third party liabilities have been transferred to Realisation Account:

  1. Dissolution expenses were 4,000.
  2. Machinery of the book value of 50,000 was sold in the market for 47,000 for which a commission of 500 was paid to the broker.
  3. A creditor for 70,000 accepted stock valued at 90,000 and paid to the firm 20,000.
  4. Loss on realisation 40,000 was divided between the partners’ X and Y in the ratio of 5:3.

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

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