Question

Pass the necessary journal entries for the following transactions on the disSolutions of the partnership firm of Tina and Rina after the various assets (other than cash and bank) and external liabilities have been transferred to realisation account: There was an outstanding bill for repairs for which \rupee20,000 were paid. The firm had stock of \rupee80,000. Tina took over 50\% of the stock at a discount of 20\% while the remaining stock was sold off for \rupee52,000. The firm had 100 shares of \rupee10 each which were taken over by the partners at market value of \rupee20 per share in their profit sharing ratio of 3:2. Realisation expenses of \rupee4,000 were paid by Rina. Tina had given a loan of \rupee40,000 to the firm which was duly paid. Rina agreed to pay off her husband’s loan of \rupee10,000 at a discount of 10\%.

Hint:

In disSolution, all assets and liabilities are transferred to the Realisation Account. Adjustments for partner takeovers and payments are recorded systematically.

Answer 1

% Journal Entries \begin{center} \begin{tabular}{|p{3cm}|p{8cm}|p{2.5cm}|p{2.5cm}|} Date & Particulars & Debit (\rupee) & Credit (\rupee)
31-Mar-2023 & Realisation A/c & 20,000 &
& {0.5cm} To Bank A/c & & 20,000
& (Payment of outstanding bill for repairs) & &
31-Mar-2023 & Tina’s Capital A/c & 32,000 &
& Bank A/c & 52,000 &
& {0.5cm} To Realisation A/c & & 80,000
& (Stock taken over by Tina at 20\% discount and remaining stock sold) & &
31-Mar-2023 & Tina’s Capital A/c & 60,000 &
& Rina’s Capital A/c & 40,000 &
& {0.5cm} To Realisation A/c & & 1,00,000
& (100 shares taken over by partners in profit sharing ratio 3:2) & &
31-Mar-2023 & Realisation A/c & 4,000 &
& {0.5cm} To Rina’s Capital A/c & & 4,000
& (Realisation expenses paid by Rina) & &
31-Mar-2023 & Tina’s Loan A/c & 40,000 &
& {0.5cm} To Bank A/c & & 40,000
& (Loan given by Tina to the firm paid off) & &
31-Mar-2023 & Realisation A/c & 9,000 &
& {0.5cm} To Bank A/c & & 9,000
& (Rina agreed to pay her husband’s loan at 10\% discount) & &
\end{tabular} \end{center}