What Journal Entries Will Be Recorded For the Following Transactions On the Dissolution Of A FFirm ? Solution,explain

Q.4. What journal entries will be recorded for the following transactions on the dissolution of a firm:

[a] Payment of unrecorded liabilities of Rs 3,200.
[b] Stock worth Rs 7,500 is taken by a partner Rohit.
[c] Profit on Realisation amounting to Rs 18,000 is to be distributed between the partners Ashish and Tarun in the ratio of 5:7.
[d] An unrecorded asset realised Rs 5,500.

SOLUTION

Journal Entries

Date	Particulars		L.F.	Amount (Dr.)	Amount (Cr.)
(A)	Realisation A/c	Dr.		3,200
	To Bank A/c				3,200
	(Being Unrecorded liability paid)
(B)	Rohit’s Capital A/c	Dr.		7,500
	To Realisation A/c				7,500
	(Being firm’s stock is taken by rohit)
(C)	Realisation A/c	Dr.		18,000
	To Ashish Capital A/c				7,500
	To Tarun Capital A/c				10,500
	(Profit on Realisation A/c is transferred to Partners’ Capital Account)
(D)	Bank A/c	Dr.		5,500
	To realisation A/c				5,500
	(Being Unrecorded asset sold)

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