CBSE 2024 · Region 2 · Set 1 · Q24

Nandu, Bandu and Chandu were partners in a firm. On 31st March, $\displaystyle 2023$ they decided to dissolve the firm. Pass necessary journal entries for the following transactions after the various assets (other than cash and bank) and outside liabilities have been transferred to Realisation Account : (i) Stock of ₹ $\displaystyle 1,40,000$ was taken by Nandu at a discount of $\displaystyle 30$%. (ii) Creditors to whom the firm owed ₹ $\displaystyle 40,000$ accepted stock at ₹ $\displaystyle 4,000$ and the balance amount was paid to them by a cheque. (iii) An old computer which had been written off completely from the books was sold for ₹ $\displaystyle 4,000$, whereas its estimated market value was ₹ $\displaystyle 10$,000. (iv) Chandu had given a loan of ₹ $\displaystyle 1,00,000$ to the firm, which was paid to him through a cheque. (v) ₹ $\displaystyle 24,000$ were recovered from a debtor which was written off as bad debt in the previous year. (vi) Bandu was appointed to look after the dissolution work for which he was allowed a remuneration of ₹ $\displaystyle 26$,000. Bandu agreed to bear the dissolution expenses. Actual dissolution expenses of ₹ $\displaystyle 36,000$ were paid by Bandhu.