Question

Pass the necessary journal entries for the following transactions on the dissolution of the partnership firm of Tina and Rina after the various assets (other than cash and bank) and external liabilities have been transferred to realisation account:

1. There was an outstanding bill for repairs for which ₹ 20,000 were paid.
2. The firm had stock of ₹ 80,000. Tina took over 50% of the stock at a discount of 20% while the remaining stock was sold off for ₹ 52,000.
3. The firm had 100 shares of ₹ 10 each which were taken over by the partners at market value of ₹ 20 per share in their profit sharing ratio of 3 : 2.
4. Realisation expenses of ₹ 4,000 were paid by Rina.
5. Tina had given a loan of ₹ 40,000 to the firm which was duly paid.
6. Rina agreed to pay off her husbands loan of ₹ 10,000 at a discount of 10%.

Answer 1

Journal Entries
Date	Particulars	L.F.	Amount (₹)	Amount (₹)
1.	Realization A/c   ...Dr.		20,000	-
	To Bank A/c		-	20,000
	(Being outstanding bill for repairs paid)
2.	Tina's Capital A/c   ...Dr.		32,000	-
	Bank A/c   ...Dr.		52,000	-
	To Realization A/c		-	84,000
	(Being 50% stock taken by Tina and rest sold)
3.	Tina's Capital A/c   ...Dr.		1,200	-
	Rina's Capital A/c   ...Dr.		800	-
	To Realization A/c		-	2,000
	(Being 100 shares taken over by partners at market value in 3 : 2)
4.	Realization A/c   ...Dr.		4,000	-
	To Rina's Capital A/c		-	4,000
	(Being realization expenses paid by Rina)
5.	Tina's Loan A/c   ...Dr.		40,000	-
	To Bank A/c		-	40,000
	(Being Tina loan paid)
6.	Realization A/c   ...Dr.		9,000	-
	To Rina's Capital A/c		-	9,000
	(Being Rina took over her husband loan)