On dissolution of firm, what entry is passed for payment of an unrecorded liability? Post category:Accountancy Reading time:1 mins read SOLUTION Realisation A/c Dr. To Cash / Bank A/c Please Share This Share this content Opens in a new window X Opens in a new window Facebook Opens in a new window Pinterest Opens in a new window LinkedIn Opens in a new window Viber Opens in a new window VK Opens in a new window Reddit Opens in a new window Tumblr Opens in a new window Viadeo Opens in a new window WhatsApp Read more articles Previous PostOn dissolution, what entry is passed if a partner under takes to make payment of a liability of the firm? Next PostOn dissolution of firm, what payment Is made first from the personal assets of a partner? You Might Also Like Following is the Balance Sheet of Crescent Chemical Works Limited as at 31st March, 2019: August 12, 2022 What does a low proprietary ratio indicate? October 3, 2022 Mandeep, Vinod and Abbas are partners sharing profits and losses in the ratio of 3: 2: 1. From 1st April, 2022 they decided to share profits equally. The Partnership Deed provides that in the event of any change in profit-sharing ratio, goodwill shall be valued at three years’ purchase of average profit of last five years. The profits and losses of past five years are: Profit: Year ended 31st March, 2018: Rs. 1,00,000; 2019: Rs. 1,50,000; 2021: Rs. 2,00,000; 2022: Rs. 2,00,000. Loss: Year ended 31st March, 2020: Rs. 50,000. Pass the Journal entry showing the working. October 18, 2022 Leave a Reply Cancel replyYou must be logged in to post a comment.
Following is the Balance Sheet of Crescent Chemical Works Limited as at 31st March, 2019: August 12, 2022
Mandeep, Vinod and Abbas are partners sharing profits and losses in the ratio of 3: 2: 1. From 1st April, 2022 they decided to share profits equally. The Partnership Deed provides that in the event of any change in profit-sharing ratio, goodwill shall be valued at three years’ purchase of average profit of last five years. The profits and losses of past five years are: Profit: Year ended 31st March, 2018: Rs. 1,00,000; 2019: Rs. 1,50,000; 2021: Rs. 2,00,000; 2022: Rs. 2,00,000. Loss: Year ended 31st March, 2020: Rs. 50,000. Pass the Journal entry showing the working. October 18, 2022