[ISC] Q. 4 Solution of Dissolution of Partnership Firm TS Grewal ISC 2023-24 Edition

Gagan, Sudan and Madan are partners in a firm. Pass necessary Journal entries for the following transactions at the time of dissolution of the firm:

1. (i) Realisation Expenses ₹ 10,000 paid.
2. (ii) Realisation Expenses amounted to ₹ 5,000. Gagan, a partner, was to bear these expenses.
3. (iii) Sudan, a partner, took a machine for ₹ 20,000.
4. (iv) Madan, a partner, agreed to settle the creditor of ₹ 30,000 for ₹ 20,000.
5. (v) Gagan, a partner, had given loan to the firm of ₹ 50,000. It was paid back to him at the time of dissolution.
6. (vi) Profit & Loss Account balance of ₹ 30,000 appeared on the assets side of the Balance Sheet.
7. (vii) Gagan agreed to purchase the firm’s Goodwill (Not recorded in the books of the firm) at a value of ₹ 25,000.
8. (viii) There were debtors of ₹ 76,000. A provision for Bad and Doubtful Debts also stood in the books of the firm at ₹ 6,000. ₹ 12,000 debtors proved bad and rest paid the due amount.