Question

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 Realisations A/c:

(i) Bank loan Rs. 12,000 paid.

(ii) Stock worth Rs. 16,000 was taken over by partner Q.

(iii) Partnelr P paid a creditor Rs. 4,000

(iv) An assets not appearing in the books of account realized Rs. 1200.

(v) Expenses of Realisation Rs. 2,000 paid by partner Q.

Answer 1

	Journal Entries
	Dr.					Cr.
	Date	Particulars		L/F	Amount	Amount
I.		Bank Loan A/c To P's capital To, Q,s capital	Dr.			12000 16,000 16,000
II.		Q's capital A/c To Realisation A/c	Dr...		16,000
		(Being stock taken over by Q)				16,000
III.		Realistion A/c To partner'p A/e (Creditors paid by partner P)	Dr.		4000	4000
IV.		P's capital A/c Q's capital A/c	Dr... Dr...		600 600	600
		To Realisation A/c (unrecorded assets realised)				1200
V.		Realisation A/c	Dr...		2000	2000
		To Q's capital A/c
		(Expenses on realisation paid by partner Q).