Solution of Q 16 Dissolution of a Partnership Firm TS Grewal 2022-23 [CBSE]

Pass the Journal entries for the following transactions on the dissolution of the firm of P and Q after assets (other than cash) and outside liabilities have been transferred to Realisation Account:

1. (a) Stock ₹ 2,00,000. ‘P’ took over 50% of stock at a discount of 10%. Remaining stock was sold at a profit of 25% on cost.
2. (b) Debtors ₹ 2,25,000. Provision for Doubtful Debts ₹ 25,000. ₹ 20,000 of the book debts proved bad.
3. (c) Land and Building (Book value ₹ 12,50,000) sold for ₹ 15,00,000 through a broker who charged 2% commission.
4. (d) Machinery (Book value ₹ 6,00,000) was handed over to a creditor at a discount of 10%.
5. (e) Investment (Book value ₹ 60,000) realised at 125%.
6. (f) Goodwill of ₹ 75,000 and prepaid fire insurance of ₹ 10,000.
7. (g) Trade creditors ₹ 1,60,000. Half of the trade creditors accepted Plant and Machinery at an agreed valuation of ₹ 54,000 and cash in full settlement of their claims after allowing a discount of ₹ 16,000. Remaining trade creditors were paid 90% in final settlement.