hello students in this lecture we are solving a practical question on journal entries.
Practical Questions on Dissolution of firm
1. A,B,C,D are three partner in the ratio of 3 : 3: 2 Workmen compensation reserve stood at Rs. 80,000 in Balance sheet. Pass the journal entries in the following cases:
Case A. No Information is available
Case B. Claim of workmen is Rs. 10,000 more in compare to reserve
Case C. Actual claim is Rs. 60,000
Case D. Actual claim is Rs.25,000
2. Debtors Rs. 60,000 and provision for bad debts shows at Rs.50,00 in the balance sheet. . Pass the journal entries in the following cases:
Case A. All Debtors considered good.
Case B. Debtors could realized only Rs. 30000
Case C. ½ of the debtors taken over by creditors of Rs 35000 in full settlement and remaining debtors realized of discount of 50% .
Case D. ½ of the net debtors realized 20 % less & remaining take over by the creditor of 90 %.
Case E. No information is available
3. Investment Rs.50,000 IFR Rs.8,000. . Pass the journal entries in the following cases:
a. Investment realized Rs. 40000
b. Creditors took over the invest of 20 % more than the book value.
c. ½ of the investment was taken by creditors at 80 % & remaining was sold in the market at 120%.
d. Market value of investment is Rs.45,000 & creditors are agree to take over at Rs.42,000.
e. Investment costing Rs 30,000 taken over by partner A at 80 % & remaining sold in the market. M.V of these investment was 18,000.
4. Investment represent 1,000 shares of S Limited, Purchased at Rs. 50 per Share. Market value of investment is Rs.45 per share. . Pass the journal entries in the following cases:
a. Partner A took over 200 shares @ Rs 49 per share & remaining sold in the market
b. Creditor took over 500 share at cost less 20% & remaining sold in market.
5. Creditors show in B/sheet at Rs.40,000. Pass the journal entries in the following cases:
a. No information is available
b. Creditor to be paid after2 months & immediate discount will be 10 % p.a. or 10%.
c. Creditors of Rs.5,000 was non-traceable & remaining was paid off at 90%
d. ½ of creditors accept debtors of Rs.25,000 in full settlement & remaining paid at 5 % discount
e. creditors proved at Rs. 50,000
f. Creditors of Rs.20,000 will be taken over by partner A at Rs. 22,000 or Rs.18,000 or Rs.20,000. Remaining was paid at 10% discount.
6. . B’S loan of Rs.18,000 on liability side. Pass the journal entries in the following cases:
a. No information is available
b. Partner B was take over the assets of Rs.20,000 in full settlement in respect of loan
c. Loan was to be paid immediately.
d. Loan to be transfer to capital account
7. B’s loan of Rs.18,000 in assets. Pass the journal entries in the following cases:
a. No information is available
b. Cash received from B.
c. B agree to pay off creditors of Rs.20,000 or Rs. 16,000 or Rs. 18,000 in fund settlement in context of loan
d. B’S loan paid by partner A
e. B’S loan was recovered & cash paid to creditors
8. Spouse loan of partner: Mrs. B’s loan of Rs.20,000 appears on liability side . Pass the journal entries in the following cases:
a. No information is available
b. B agree pay off his wife’s loan
c. Mrs. B loan was paid by assets of Rs.18,000 or Rs.20,000 or Rs.22,000 in full settlement
Unrecorded assets & unrecorded liability
9. There was an unrecorded assets of Rs.20,000 ,Realized Rs.18,000 or Rs.20,000 or Rs.22,000 or Rs. 0 or no information is available.
Taken over by creditor of Rs. 18,000 /Rs. 20,000/Rs. 22,000/in fund settlement
10. There was an unrecorded liability of Rs.15,000. Pass the journal entries in the following cases:
a. No information is available
b. Settled at Rs.14,000 or Rs.15000 or Rs.16,000
c. Settled by an unrecorded assets of Rs. 18,000
d. Settled by takeover by partner B
e. Settled by accepting assets of Rs. 12,000 or Rs.18,000 or Rs.15,000
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