SOLUTION :
In the Books of FIRM” | |||
Journal Entries | |||
Date | Particular | Amount | Amount |
1 | General Reserve A/c …………………………………………………………………………………………………………………………………………………….Dr | 12,000 | |
To Asha Capital A/c | 4,800 | ||
To Usha Capital A/c | 4,800 | ||
To Nisha Capital A/c | 2,400 | ||
(Being Reserve distributed to partner) | |||
2 | Creditor’s A/c …………………………………………………………………………………………………………….…………………………………………………….Dr | 80,000 | |
Bills Payable A/c………………………………………………………………………………………………………..………………………………………………….Dr | 28,000 | ||
To Realisation A/c | 1,08,000 | ||
(Being Liabilities trf to Realisation A/c) | |||
3 | Realisation A/c …………………………………………………………………………………………………………………………………………………….Dr | 2,98,000 | |
To Machinery A/c | 1,00,000 | ||
To Investment A/c | 48,000 | ||
To Debtor’s A/c | 1,10,000 | ||
To Stock A/c | 40,000 | ||
(Being Asset transfer to realisation A/c) | |||
4 | Asha Cpaital A/c …………………………………………………………………………………………………………………………………………………….Dr | 14,400 | |
Usha Capital A/c …………………………………………………………………………………………………………………………………………………….Dr | 14,400 | ||
Nisha Capital A/c …………………………………………………………………………………………………………………………………………………….Dr | 7,200 | ||
To Profit & Loss A/c | 36,000 | ||
(Being profit & Loss transfer to Partner’s) | |||
5 | R.D.D A/c …………………………………………………………………………………………………………………………………………………….Dr | 6,000 | |
To Realisation A/c | 6,000 | ||
(Being R.D.D transfer to realisation A/c) | |||
6 | Cash A/c …………………………………………………………………………………………………………………………………………………….Dr | 2,58,000 | |
To Realisation A/c | 2,58,000 | ||
(Being AssetMachinery, Investment, Stock & Debtor Realise) | |||
7 | Realisation A/c …………………………………………………………………………………………………………………………………………………….Dr | 6,000 | |
To Cash A/c | 6,000 | ||
(Being Realisation Exp Paid) | |||
8 | Cash A/c ……………………………………………………………………………………………………………………………………………………….Dr | 48,000 | |
To Realisation A/c | 48,000 | ||
(Being Goodwill Realise) | |||
9 | Realisation A/c ……………………………………………………………………………………………………………………………………………………………….Dr | 1,08,000 | |
To Cash A/c | 1,08,000 | ||
(Beingcreditors and Bills Payable Paid off) | |||
10 | Asha’s loan A/c …………………………………………………………………………………………………………………………………………………………………….Dr | 16,000 | |
To Cash A/c | 16,000 | ||
(Being Asha’s Loan account paid) | |||
11 | Realisation /c ………………………………………………………………………………………………………………………………………………………………….Dr | 8,000 | |
To Asha Capital A/c | 3,200 | ||
To Usha Capital A/c | 3,200 | ||
To Nisha Capital A/c | 1,600 | ||
(Being Profit on realisation trf to Partner’s) | |||
12 | Asha Cpaital A/c ………………………………………………………………………………………………………………………………………………………………….Dr | 1,13,600 | |
Usha Capital A/c …………………………………………………………………………………………………………………………………………………………….Dr | 33,600 | ||
Nisha Capital A/c …………………………………………………………………………………………………………………………………………………………….Dr | 36,800 | ||
To Cash A/c | 1,84,000 | ||
(Being Partber’s Account Settled) | |||
Working:
Dr Realisation A/c Cr | |||||
Particulars | Amount | Amount | Particulars | Amount | Amount |
To Sundry Assets A/c | By Sundry Liabilities A/c | ||||
Machinery | 1,00,000 | Creditors | 80,000 | ||
Investments | 48,000 | Bills Payable | 28,000 | ||
Debtors | 1,10,000 | R.D.D | 6,000 | 1,14,000 | |
Stock | 40,000 | 2,98,000 | By Bank A/c | ||
To Bank A/c | Machinery | 90,000 | |||
Dissolution Expense | 6,000 | Stock | 36,000 | ||
Creditors | 80,000 | Investments | 42,000 | ||
Bills Payable | 28,000 | 1,14,000 | Debtors | 90,000 | |
To Partners’ Capital A/c (Profit on realisation transferred) | Goodwill | 48,000 | 3,06,000 | ||
Asha | 3,200 | ||||
Usha | 3,200 | ||||
Nisha | 1,600 | 8000 | |||
420000 | 420000 | ||||
Dr Partner Capital A/c Cr | |||||||
Particulars | Asha | Usha | Nisha | Particulars | Asha | Usha | Nisha |
To Profit and Loss A/c | 14,400 | 14,400 | 7,200 | By Balance b/d | 1,20,000 | 40,000 | 40,000 |
To Cash A/c | 1,13,600 | 33,600 | 36,800 | By Realisation A/c – Profit | 3,200 | 3,200 | 1,600 |
By General Reserve A/c | 4,800 | 4,800 | 2,400 | ||||
128000 | 48,000 | 44,000 | 128000 | 48,000 | 44,000 | ||