Question - 02

What journal entries would be recorded for the following transactions on the dissolution of a firm after various assets on the third party liabilities have been transferred to realization account.

  1. Arti took over the stock worth Rs. 80,000 at Rs. 68,000.
  2. There was unrecorded bike of Rs. 40,000 which was taken over by Mr. Karim.
  3. The firm paid Rs. 40,000 as compensation to enployees.
  4. Sundry creditors amounting to Rs. 36,000 were settled at a discount of 15%.
  5. Loss on realizations Rs. 42,000 was to be distributed between Arti and Karim in the ratio of 3:4.
NOTE : Purchase Novbodh book for extra information.