CBSE 2024 · Region 2 · Set 2 · Q24

Pass the necessary journal entries for the following transactions on the dissolution of the partnership firm of Manish and Nikhil after various assets (other than cash and bank balance) and outside liabilities have been transferred to Realisation Account. Manish and Nikhil were sharing profits and losses in the ratio of $\displaystyle 5$ : 1. (i) Manish agreed to pay off his father's $\displaystyle 1$ oan of ₹ $\displaystyle 50$,000. (ii) An old vehicle which had been written off completely from the books was sold for ₹ $\displaystyle 45,000$ whereas its estimated market value was ₹ $\displaystyle 58$,000. (iii) Nikhil took over stock worth ₹ $\displaystyle 75,000$ at ₹ $\displaystyle 69$,000. (iv) Creditors worth ₹ $\displaystyle 90,000$ accepted ₹ $\displaystyle 15,000$ cash and stock ₹ $\displaystyle 80,000$ in full settlement of their claims. (v) Realisation expenses amounting to ₹ $\displaystyle 18,000$ were paid by Manish. (vi) Profit on realisation ₹ $\displaystyle 36,000$ was to be distributed between Manish and Nikhil.