Sanjay and Sameer were partners in a firm sharing profits in the ratio of 2 : 3. On 31.3.2023 their Balance Sheet was as follows:
Sanjay and Sameer were partners in a firm sharing profits in the ratio of 2 : 3. On 31.3.2023 their Balance Sheet was as follows:
The firm was dissolved on 1.4.2023 and the assets and liabilities were settled as follows:
(I) Sanjay agreed to take over land and building at ₹ 3,50,000 by paying cash;
(ii) Stock was sold for ₹ 90,000;
(iii) Creditors accepted Debtors in full settlement of their claim.
Pass necessary journal entries for dissolution of the firm.
[Ans. Final payment to Sanjay ₹ 2,38,000 and Sameer ₹ 3,57,000.]
Balance Sheet of Sanjay and Sameer as at 31.3.2023
| Liabilities | ₹ | Assets | ₹ |
| Capitals: Sanjay Sameer | Land and Building | 3,00,000 | |
| Creditors | Stock | 1,00,000 | |
| Workmen Compensation Reserve | Debtors | 1,50,000 | |
| Bank | 1,55,000 | ||
| 7,05,000 | 7,05,000 |
Anurag Pathak Answered question September 30, 2024
