Rohit Kunal and Sarthak are partners in a firm They decided to dissolve their firm Pass necessary Jo......

Rohit, Kunal and Sarthak are partners in a firm. They decided to dissolve their firm. Pass necessary Journal entries for the following after various assets otherthanCashandBank

and the third party liability have been transferred to Realisation Account:

a Kunal agreed to pay off his wife's loan of 6,000.

b Total Creditors of the firm were 40,000. Creditors worth 10,000 were given a piece of furniture costing 8,000 in full and final settlement. Remaining Creditors allowed a discount of 10%.

c Rohit had given a loan of 70,000 to the firm which was duly paid.

d A machine which was not recorded in the books was taken over by Kunal at 3,000, whereas its expected value was 5,000.

e The firm had a debit balance of 15,000 in the Profit and Loss Account on the date of dissolution.

f Sarthak paid the realisation expenses of 16,000 out of his private funds, who was to get a remuneration of 15,000 for completing dissolution process and was responsible to bear all the realisation expenses.

By: Aman