Rohit , Kunal and Sarthak are partners in a firm . They decided to dissolve their firm .
Channel: Doubtnut
Date: 05/04/2020

Rohit , Kunal and Sarthak are partners in a firm . They decided to dissolve their firm . Pass necessary Journal entries for the following after various assets (other than Cash and Bank) and the third party liability have been transferred to Realisation Account : (a) Kunal agreed to pay off his wife\'s loan of ? 6,000 . (b) Total Creditors of the firm were ? 40,000 . Creditors worth ? 10,000 were given a piece of furniture costing ? 8,000 in full and final settlement . Remaining Creditors allowed a discount of 10% . (c) Rohit had given a loan of ? 70,000 to the firm which was duly paid. (d) A machine which was not recorded in the books was taken over by Kunal at ? 3,000 , whereas its expected value was ? 5,000 . (e) The firm had a debit balance of ? 15,000 in the Profit and Loss Account on the date of dissolution . (f) Sarthak paid the realisation expenses of ? 16,000 out of his private funds , who was to get a remuneration of ? 15,000 for completing dissolution process and was responsible to bear all the realisation expenses.