Solution of Q 11 Dissolution of a Partnership Firm TS Grewal 2022-23 [CBSE]

Aman and Harsh were partners in a firm. They decided to dissolve their firm. Pass necessary Journal entries for the following after assets (other than Cash and Bank) and outside liabilities have been transferred to Realisation Account:

1. (a) There was furniture of ₹ 50,000. Aman took over 50% of the furniture at 10% discount and the remaining furniture was sold at 30% profit on book value.
2. (b) Profit & Loss Account was showing a credit balance of ₹ 15,000 on the date of dissolution.
3. (c) Harsh’s loan of ₹ 6,000 was settled by paying ₹ 5,500.
4. (d) The firm paid realisation expenses of ₹ 5,000 on behalf of Harsh, a partner.
5. (e) There was a bill for ₹ 1,200 under discount. The bill was received from Soham who became insolvent and a first and final dividend of 25% was received from his estate.
6. (f) Creditors, to whom the firm owed ₹ 6,000, accepted stock of ₹ 5,000 at a discount of 5% and the balance in cash.