Page 8 - ha diss

31. Pass the necessary journal entries for the following transactions on the
dissolution of the firm of P and Q after the various assets (other than cash) and

outside liabilities have been transferred to realisation account.
(i)Bank loan Rs 12,000 was paid.
(ii)Stock worth Rs 16,000 was taken over by a partner Q.

(iii) Partner P paid a creditor Rs 4,000.
(iv)An asset not appearing in the books of accounts realised Rs 1,200.

(v)Expenses of realisation Rs 2,000 were paid by partner Q.
(vi)Profit on realisation Rs 36,000 was distributed between P and Q in 5 : 4 ratio

32. Pass the necessary journal entries for the following transactions on the

dissolution of the firm of K and L after the various assets (other than cash) and
outside liabilities have been transferred to realisation account.
(i)Bank loan Rs 15,000 was paid.

(ii)Stock worth Rs 20,000 was taken over by a partner L.
(iii)K paid Rs 9,000 to a creditor.

(iv)A liability not appearing in the books of accounts settled Rs 3,700.
(v)Expenses on realisation Rs 900 were paid by L.
(vi)Profit on realisation Rs 7,100 was distributed between K and L in 7 : 3 ratio.

33. Kumar, Shyam and Ratan were partners in a firm sharing profits in the ratio of

5:3:2 They decided to dissolve the firm with effect from 1st April, 2013. On that date
the balance sheet of the firm was as follows:
The dissolution resulted in the following:

(i)Plant of Rs 40,000 was taken over by Kumar at an agreed value of Rs 45,000 and
remaining plant realised Rs 50,000.

(ii)Furniture realised Rs 40,000.
(iii) Motor van was taken over by Shyam for Rs 30,000.
(iv)Debtors realised Rs 1,000 less.

(v)Creditors for Rs 20,000 were untraceable and the remaining creditors were paid in