CBSE 2026 · Region 2 · Set 1 · Q22

Pass the necessary journal entries for the following transactions on the dissolution of the partnership firm of Arjuna and Kunal after various assets (other than cash) and external liabilities have been transferred to Realisation Account : (i) Arjuna was appointed to look after dissolution work for which he was allowed a remuneration of ₹ $\displaystyle 10$,000. He agreed to bear the dissolution expenses. Actual dissolution expenses paid by Arjuna were ₹ $\displaystyle 9$,500. (ii) A creditor to whom the firm owed ₹ $\displaystyle 9,000$, accepted stock of ₹ $\displaystyle 3,000$ at a discount of $\displaystyle 10$% and the balance was paid to him in cash. (iii) Kunal had given a loan of ₹ $\displaystyle 20,000$ to the firm. He was paid ₹ $\displaystyle 19,000$ in full settlement of his loan. (iv) A piece of furniture, which was not recorded in the books was taken over by Arjuna at ₹ $\displaystyle 27,000$ whereas its expected value was ₹ $\displaystyle 30$,000.