CBSE 2025 · Region 1 · Set 1 · Q24

Pass the necessary journal entries for the following transactions on the dissolution of a partnership firm of Vibha and Ajit after various assets (other than cash) and external liabilities have been transferred to Realisation Account : (i) Creditors worth ₹ $\displaystyle 46,000$ accepted ₹ $\displaystyle 9,000$ cash and furniture of ₹ $\displaystyle 32,000$ in full settlement of their claim. (ii) The firm had stock of ₹ $\displaystyle 20$,000. Ajit took over $\displaystyle 40$% of the stock at a discount of $\displaystyle 10$% while the remaining stock was sold for ₹ $\displaystyle 18$,000. (iii) Vibha was appointed to look after dissolution work for which she was allowed a remuneration of ₹ $\displaystyle 16$,000. Vibha agreed to bear the dissolution expenses. Actual dissolution expenses ₹ $\displaystyle 15,000$ were paid by Vibha. (iv) Ajit's loan of ₹ $\displaystyle 45,000$ was settled at ₹ $\displaystyle 42$,000. (V) A machine which was not recorded in the hooks was taken over by Vibha at ₹ $\displaystyle 23,000$, whereas its expected value was ₹ $\displaystyle 28$,000. (vi) The firm had a debit balance of ₹ $\displaystyle 20,000$ in the Profit and Loss Account on the date of dissolution.