Journal entries for dissolutions, Financial Accounting

Assignment Help:

Journal Entries for Dissolutions

The following journal entries are relevant for the purpose of recording all dissolutions:

1)    DR.    Revaluation account
CR.  Asset account
(With the  book value of the assets being sold / or being realized)

2)    DR.    Cash book
    CR.    Realisation account
(With the cash received on the assets being realized)

3)    DR.    Realisation account
CR.    Cash book
(With the dissolution expenses  paid)

4)    DR.    Creditors account payables
CR.    Cash book
(With payment made to the creditors)

5)    DR.    Creditors
CR.    Realization  account
(With the discount received from account payable or creditors)

6)    Dr.    Realization account
CR.    Capital accounts
(With the profit on realization being the balancing figure and according to PSR)
Incase it is a loss, then the entries are received.

7)   DR.    Current account
CR.    Capital accounts
(To transfer the accounts due to the partners on their current accounts to the capital account)

8)    DR    Capital accounts
    CR.    Cash book
(To close off the capital accounts with the cash book)


Related Discussions:- Journal entries for dissolutions

Effect of bankruptcy-bankruptcy and liquidation, Effect of bankruptcy A...

Effect of bankruptcy A D of A made for the benefit of creditors generally will be an act of bankruptcy and therefore a bankruptcy petition may be presented against the debtor w

Calculate present value-current yield-interest rates bonds, Present Value o...

Present Value of a Bond 1. Assume that you wish to purchase a 20 year bond that has a maturity value of $1,000 and makes semiannual interest payments of $40.  If you require a

Explain in detail about the sole proprietorship, Explain in detail about th...

Explain in detail about the Sole proprietorship Sole proprietorship, as the name suggests, is where an individual is the sole owner of a business. This type of business is ofte

Calculate the risk premium , Question: Zelo, Inc. stock has a beta of 1...

Question: Zelo, Inc. stock has a beta of 1.23. The risk-free rate of return is 4.5% and the market rate of return is 10%. What is the amount of the risk premium on Zelo stock?

What is the cost per dinner based on average sales, Question: Airways C...

Question: Airways Catering prepares dinner for several airlines, and sales average 500,000 dinners per month. The cost of each dinner is made up principally of the cost of meat

Solutions, I see a question posted. I can I be sure the problem has been s...

I see a question posted. I can I be sure the problem has been solved. I tried calling your number but I got no answer

Adjudication order-adjudication of debtor, Adjudication order The court...

Adjudication order The court may adjudge the debtor bankrupt on the application of the O.R. or any creditor in the following cases: If the creditors so resolve at their first

Which investment is riskier, Stock A has an expected return of 9 percent, a...

Stock A has an expected return of 9 percent, a standard deviation of 20 percent, and a market beta of 0.5. Stock B has an expected rate of return of 10 percent, a standard deviatio

Situational Decsisions, Your Company makes 42,000 units per year of a part ...

Your Company makes 42,000 units per year of a part it uses in the products it manufactures. The unit product cost of this part is computed as follows: Direct material $15.00 Direc

Sales, what is recorded sales on account of 3,280

what is recorded sales on account of 3,280

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd