Balance Sheet as on 31st
March, 2008
|
Liabilities
|
Amount
|
Amount
|
Assets
|
Amount
|
Amount
|
|
Capital A/c
|
|
|
Machinery
|
|
25000
|
|
Pannalal
|
|
30000
|
Stock
|
|
10000
|
|
Babulal
|
|
10000
|
Debtors
|
27500
|
|
|
Hiralal
|
|
10000
|
(-) R.D.D.
|
-1500
|
26000
|
|
General
Reserve
|
|
3000
|
Investments
|
|
12000
|
|
Creditors
|
|
20000
|
Profit
& Loss A/c
|
|
9000
|
|
Pannalal’s
Loan A/c
|
|
4000
|
Bank
|
|
2000
|
|
Bills Payable
|
|
7000
|
|
|
|
|
|
|
84000
|
|
|
84000
|
On the above
date the partners decided to dissolve the firm:
1. Assets
were realised: Machinery Rs. 22500, Stock Rs. 9000, Investments Rs. 10,500,
Debtors Rs. 22500.
2.
Dissolution expenses were Rs. 1,500.
3. Goodwill
of the firm realised Rs. 12000.
Pass the
necessary Journal Entries in the Books of the firm.
Solution:
Journal
Entries in the books of the firm.
|
Date
|
Particulars
|
L.F.
|
Debit
|
Credit
|
|
31.3.2008
|
General Reserve
A/c ……. Dr.
|
|
3000
|
|
|
|
To Pannalal’s
A/c
|
|
|
1200
|
|
|
To Babulal’s
A/c
|
|
|
1200
|
|
|
To Hiralal’s
A/c
|
|
|
600
|
|
|
[Being
balance in general reserve transferred ]
|
|
|
|
|
31.3.2008
|
Pannalal’s
Capital A/c ……. Dr.
|
|
3600
|
|
|
|
Babulal’s Capital
A/c ……. Dr.
|
|
3600
|
|
|
|
Hiralal’s
Capital A/c ……. Dr.
|
|
1800
|
|
|
|
To Profit
& Loss A/c
|
|
|
9000
|
|
|
[Being
Accumulated losses transferred]
|
|
|
|
|
31.3.2008
|
Realisation
A/c ……. Dr.
|
|
74500
|
|
|
|
To
Machinery A/c
|
|
|
25000
|
|
|
To Stock
A/c
|
|
|
10000
|
|
|
To Debtors A/c
|
|
|
27500
|
|
|
To
Investments A/c
|
|
|
12000
|
|
|
[Being
assets transferred to Realisation A/c at their book value]
|
|
|
|
|
31.3.2008
|
Creditors
A/c ……. Dr.
|
|
20000
|
|
|
|
Bills
Payable A/c ……. Dr.
|
|
7000
|
|
|
|
R.D.D. A/c ……. Dr.
|
|
1500
|
|
|
|
To
Realisation A/c
|
|
|
28500
|
|
|
[Being
outsiders liabilities transferred to Realisation A/c at their book value)
|
|
|
|
|
31.3.2008
|
Bank A/c ……. Dr.
|
|
76500
|
|
|
|
To
Realisation A/c
|
|
|
76500
|
|
|
[Being
assets were realised]
|
|
|
|
|
31.3.2008
|
Realisation
A/c ……. Dr.
|
|
28500
|
|
|
|
To Bank A/c
|
|
|
28500
|
|
|
[Being
outsiders liabilities and realisation expenses paid]
|
|
|
|
|
31.3.2008
|
Pannalal’s
Loan A/c ……. Dr.
|
|
4000
|
|
|
|
To Bank A/c
|
|
|
4000
|
|
|
[Being
Partners loan paid ]
|
|
|
|
|
31.3.2008
|
Realisation
A/c ……. Dr.
|
|
2000
|
|
|
|
To Pannalal’s
Capital A/c
|
|
|
800
|
|
|
To Babulal’s
Capital A/c
|
|
|
800
|
|
|
To Hiralal’s
Capital A/c
|
|
|
400
|
|
|
[Being
Profit on realisation is recorded]
|
|
|
|
|
31.3.2008
|
Pannalal’s
Capital A/c ……. Dr.
|
|
28400
|
|
|
|
Babulal’s
Capital A/c ……. Dr.
|
|
8400
|
|
|
|
Hiralal’s
Capital A/c ……. Dr.
|
|
9200
|
|
|
|
To Bank A/c
|
|
|
46000
|
|
|
[Being the
final settlement is made]
|
|
|
|
