​Q15. Hema and Garima were partners in a firm sharing profit in the ratio of 3 : 2. On March 31,2015, their Balance Sheet was as following :

                                        Balance Sheet of Hema and Garima 
                                              As at March 31, 2015
            Liabilities            Rs.          Assets  Rs.
Garima's Husband's Loan
Hema's Loan
Hema                                2,00,000
Garima                              1,00,000

Leasehold premises
  4,36,000   4,36,000

On the above data the firm was dissolved. The various assets were realized and liabilities were settled as under :

(i) Garima agreed to pay her husband's loan.

(ii) Leasehold premises realized Rs. 1,50,000 and debtors Rs. 2,000 less.

(iii) Half the creditors agreed to accept furniture of the firm as full settlement of their claim and remaining half agreed to accept 5% less.

(iv) 50% stock was taken over by Hema on cash payment of Rs. 90,000 and remaining stock was sold for Rs. 94,000.

(v) Realisation expenses of Rs. 10,000 were paid by Garima on behalf of firm.

(vi) pass necessary journal entries for the dissolution of the firm.

Dear Student,

Journal entries are as follows:

Date Particulars LF Amount (in Rs) Amount (in Rs)
  Creditors A/c Dr 36,000  
  Garima's Husband's Loan A/c Dr 60,000  
        To Realisation A/c     96,000
  (Liabilities transferred to Realisation A/c)      
  Realisation A/c Dr 396,000  
      To Debtors A/c     76,000
      To Stock A/c     200,000
      To Furniture A/c     20,000
      To Leasehold Premises A/c     100,000
  (Assets transferred to Realisation A/c)      
  Bank A/c Dr 224,000  
       To Realisation A/c (1,50,000+74,000)     224,000
  (Amount realised on Leasehold Premises & Debtors)      
  Realisation A/c Dr 60,000  
        To Garima's Capital A/c     60,000
  (Garima agreed to repay her husband's loan)      
  Realisation A/c (Creditors) Dr 35,100  
          To Realisation A/c (Furniture) (50% of creditors)     18,000
          To Bank A/c (36,000*50%*95%)     17,100
  (Creditors Realised)      
  Bank A/c (90,000+94,000) Dr 184,000  
       To Realisation A/c (Stock)     184,000
  (Stock Realised)      
  Realisation A/c Dr 10,000  
       To Garima's Capital A/c     10,000
  (Realisation exps paid by Garima on Firm's behalf)      


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