CBSE 2023 · Region 4 · Set 2 · Q24

Pass the necessary journal entries for the following transactions on dissolution of the firm of Kartik and Karan after various assets (other than cash) and outside liabilities have been transferred to Realisation Account : (i) Kartik had given a loan of ₹ $\displaystyle 12,000$ to the firm which was duly paid. (ii) Profit and Loss Account was showing a debit balance of ₹ $\displaystyle 15,000$ on the date of dissolution. (iii) Creditors to whom the firm owed ₹ $\displaystyle 24,000$ accepted stock of ₹ $\displaystyle 23,000$ in full settlement. (iv) A machine which was not recorded in the books of the firm was taken over by Karan at ₹ $\displaystyle 31$,000. (v) Kartik agreed to pay his brother's loan of ₹ $\displaystyle 16$,000. (vi) Furniture of ₹ $\displaystyle 60,000$ was sold at a profit of $\displaystyle 10$%.