Aman and Harsh were partners in a firm. They decided to dissolve their firm. Pass necessary Journal entries for the following after assets (other than Cash and Bank) and outside liabilities have been transferred to Realisation Account.

  • There was furniture of ₹ 50,000. Aman took over 50% of the furniture at 10% discount.
  • Profit & Loss Account was showing a credit balance of ₹ 15,000 on the date of dissolution.
  • Harsh’s loan of ₹ 6,000 was settled by paying ₹ 5,500.
  • The firm paid realisation expenses of ₹ 5,000 on behalf of Harsh, a partner.
  • There was a bill for ₹ 1,200 under discount. The bill was received from Soham who became insolvent and a first and final dividend of 25% was received from his estate.
  • Creditors, to whom the firm owed ₹ 6,000, accepted stock of ₹ 5,000 at a discount of 5% and the balance in cash.

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