CBSE 2022 · Region 5 · Set 3 · Q8

Give the necessary journal entries for the following transactions on dissolution of the firm of Sonu and Monu on 31st March, $\displaystyle 2021$, after transfer of various assets (other than cash and bank balance) and the third party liabilities to Realisation Account. They shared profits and losses in the ratio of $\displaystyle 2$: l . (i) Sonu agreed to take over the firm's goodwill (not recorded in the books of the firm) at a valuation of $\displaystyle 40$,000. (ii) Bills payable of $\displaystyle 30,000$ falling due on 30th April, $\displaystyle 2021$ were discharged at ₹ $\displaystyle 29$,550. (iii) Stock worth ₹ $\displaystyle 8,00,000$ was taken over by partner, Sonu at $\displaystyle 10$% discount. (iv) Creditors of $\displaystyle 2,00,000$, accepted machinery valued at $\displaystyle 2,20,000$ in full settlement of their claim. (v) Expenses of realisation ₹ $\displaystyle 10,000$ were paid by partner, Sonu.

OR

Anu, Bhanu and Charu were partners in a firm sharing profits in the ratio of $\displaystyle 2$:$\displaystyle 2$:1. Anu decided to retire from the firm on 31st March, 2021. The balance sheet of the firm on that date was as follows : Balance Sheet ofAnu, Bhanu and Charu as on 31st March, $\displaystyle 2021$ : Liabilities Amount Assets Amount Q) Q) Creditors $\displaystyle 24,000$ Bank $\displaystyle 10,000$ Profit & Loss A/c $\displaystyle 5,000$ Debtors $\displaystyle 20,000$ Less Provision $\displaystyle 400$ $\displaystyle 19,600$ for Doubtful Debts Capitals : Stock $\displaystyle 27,000$ Anu $\displaystyle 31$ ,$\displaystyle 000$ Investments $\displaystyle 10,000$ Bhanu $\displaystyle 30,000$ Patents $\displaystyle 2,400$ Charu $\displaystyle 22,000$ $\displaystyle 83,000$ Premises $\displaystyle 43,000$ $\displaystyle 1,12,000$ $\displaystyle 1,12,000$ On retirement of Anu, following terms were agreed upon : (i) Anu sold her share of premium for goodwill to Bhanu for ₹ $\displaystyle 6,000$ and to Charu for $\displaystyle 3$,000. (ii) Provision for doubtful debts was to be raised to $\displaystyle 5$% on debtors. (iii) Patents were considered as valueless. (iv) Anu was paid ₹ $\displaystyle 9,600$ through a cheque and balance was transferred to her loan A/c. Prepare Revaluation Account and Anu's Capital Account on her retirement.