Doubts

Fixed Assets appear in the Balance Sheet of a firm at Rs. 52,000. They realised at a loss of 4% on net collection. State the amount collected from such assets.

SOLUTION If net collection is Rs. 100 Loss will be Rs. 4 and hence book value of assets must be Rs. 104. As such, net amount realised from fixed assets…

Continue ReadingFixed Assets appear in the Balance Sheet of a firm at Rs. 52,000. They realised at a loss of 4% on net collection. State the amount collected from such assets.

On dissolution, the amount of Sundry Assets transferred to Realisation Account is Rs. 1,00,000. 40% of the assets realised 120% of their book value; 25% of the remaining were sold at a discount of 20% and remaining were taken over by Vikas (a partner) at book value. Pass entries.

SOLUTION Bank A/c           Dr.       60,000To Realisation A/c                             60,000 (Assets of book value of Rs. 40,000 sold at Rs. 48,000 and assets having book value of Rs. 15,000 sold for Rs.…

Continue ReadingOn dissolution, the amount of Sundry Assets transferred to Realisation Account is Rs. 1,00,000. 40% of the assets realised 120% of their book value; 25% of the remaining were sold at a discount of 20% and remaining were taken over by Vikas (a partner) at book value. Pass entries.

In settlement of Tarun ’s (a Partner) loan of Rs. 2.5,000 to the firm, a computer not appearing in the hooks is taken over by him at an agreed value of Rs. 30.000. Pass necessary journal entry.

SOLUTION Tarun’ s Loan A /c       Dr.       25,000Tarun’ s Capital A /c Dr.       5,000 To Realisation A/c                             30,000(Tarun' s Loan of Rs. 25,000 settled by giving him unrecorded computer at an…

Continue ReadingIn settlement of Tarun ’s (a Partner) loan of Rs. 2.5,000 to the firm, a computer not appearing in the hooks is taken over by him at an agreed value of Rs. 30.000. Pass necessary journal entry.

Dissolution expenses amounting to Rs. 15,000 were to be borne by partner Y and the balance by the firm. Dissolution expenses amounted to Rs. 25,000 and the entire amount was paid by Y. Pass journal entry.

SOLUTION Realisation A/c               Dr.       10,000 To Y’s Capita! A/c                              10,000(Dissolution expenses paid by)

Continue ReadingDissolution expenses amounting to Rs. 15,000 were to be borne by partner Y and the balance by the firm. Dissolution expenses amounted to Rs. 25,000 and the entire amount was paid by Y. Pass journal entry.

Dissolution expenses amounting to Rs. 6,000 were to be borne by partner X and the balance by the firm. Dissolution expenses amounted to Rs. 15,000 and the entire amount was paid by firm. Pass journal entry.

SOLUTION Realisation A/c   Dr.       9,000X' s Capital A/c   Dr.       6,000 To Bank A/c                                       15,000(Dissolution expenses paid by the firm and X’s share debited to his A/c.)

Continue ReadingDissolution expenses amounting to Rs. 6,000 were to be borne by partner X and the balance by the firm. Dissolution expenses amounted to Rs. 15,000 and the entire amount was paid by firm. Pass journal entry.