CBSE 2024 · Region 2 · Set 3 · Q24

Pass the necessary journal entries for the following transactions on the dissolution of the partnership firm of Sharma and Verma after the various assets (other than cash and bank balance) and outside liabilities have been transferred to Realisation Account : (i) Sharma paid creditors ₹ $\displaystyle 34,000$ in full setllement of their claim of ₹ $\displaystyle 40$,000. (ii) Verma agreed to pay his wife's loan of ₹ $\displaystyle 80$,000. (iii) There was an old typewriter which had been written off completely from the books. It was estimated to realise ₹ $\displaystyle 3$,000. It was taken away by Verma at the estimated price less $\displaystyle 20$%. (iv) Neelu, an old customer whose account for ₹ $\displaystyle 1,500$ was written off as bad debt in the previous year, paid $\displaystyle 80$% of the amount. (v) Dissolution expenses amounting to ₹ $\displaystyle 8,000$ were paid by Sharma. (vi) Loss on realisation ₹ $\displaystyle 40,000$ was to be distributed between Sharma and Verma in their profit sharing ratio $\displaystyle 3$ : 2.