Q.14 Solution Dissolution of Partnership Firm TS Grewal Book Class 12 CBSE

Rohit, Kunal and Sarthak partners decided to dissolve their firm. Pass necessary Journal entries for the following after various assets (other than Cash and Bank) and outside liability had been transferred to Realisation Account:

1. (a) Kunal agreed to pay his wife’s loan of ₹ 60,000.
2. (b) Total Creditors of the firm were ₹ 40,000. Creditors of ₹ 10,000 were given part of furniture of book value ₹ 8,000 out of total furniture of book value ₹ 28,000 in settlement. Remaining Creditors allowed discount of 10%.
3. (c) Rohit had given a loan of ₹ 70,000 to the firm which was paid.
4. (d) A machine which was not recorded in the books was taken by Kunal at ₹ 3,000, whereas its expected value was ₹ 5,000.
5. (e) The firm had a debit balance of ₹ 15,000 in the Profit & Loss Account on the date of dissolution.
6. (f) Sarthak paid the realisation expenses of ₹ 16,000 and was to be paid ₹ 15,000, including expenses for completing dissolution process.