What is the number of major heads of the Equity and Liabilities side of a Company’s Balance Sheet? Post category:Accountancy Reading time:1 mins read SOLUTION Four. Please Share This Share this content Opens in a new window Twitter Opens in a new window Facebook Opens in a new window Google+ Opens in a new window Pinterest Opens in a new window LinkedIn Opens in a new window Viber Opens in a new window VK Opens in a new window Reddit Opens in a new window Tumblr Opens in a new window Viadeo Opens in a new window WhatsApp Read more articles Previous PostWhat is the number of major heads of the Assets side of a Company’s Balance Sheet? Next PostHow are the assets and liabilities of a Company usually marshalled? You Might Also Like Aman and Harsh were partners in a firm. They decided to dissolve their firm. Pass necessary Journal entries for the following after various assets (other than Cash and Bank) and third-party liabilities have been transferred to Realisation Account: (a) There was furniture worth Rs. 50,000. Aman took over 50% of the furniture at 10% discount and the remaining furniture was sold at 30% profit on book value. (b) Profit and Loss Account was showing a credit balance of Rs. 15,000 on the date of dissolution. (c) Harsh’s loan of Rs. 6,000 was discharged at Rs. 6,200. (d) The firm paid realisation expenses amounting to Rs. 5,000 on behalf of Harsh who had to bear these expenses. (e) There was a bill for 1,200 under discount. The bill was received from Soham who proved insolvent and a first and final dividend of 25% was received from his estate. (f) Creditors to whom the firm owed Rs. 6,000, accepted stock of Rs. 5,000 at a discount of 5% and the balance in cash. July 25, 2022 Vinod and Mohan are partners. Vinod ‘s Capital is Rs. 1,00,000 and Mohan ‘s Capital is Rs. 60,000. Interest on capital is payable @6% p.a. Mohan is entitled to a salary of Rs. 3,000 per month. Profit for the current year before interest and salary to Mohan is Rs. 80,000.Prepare Profit and Loss Appropriation Account. October 11, 2022 What Journal entries would be passed for discharge of following unrecorded liabilities on the dissolution of a firm of partners A and B: (a) There was a contingent liability in respect of bills discounted but not matured of Rs. 18,500. An acceptor of one bill of Rs. 2,500 became insolvent and fifty paise in a rupee was recovered. The liability of the firm on account of this bill discounted and dishonoured has not so far been recorded. (b) There was a contingent liability in respect of a claim for damages for Rs. 75,000, such liability was settled for Rs. 50,000 and paid by the partner A. (c) Firm will have to pay Rs. 10,000 as compensation to an injured employee, which was a contingent liability not accepted by the firm. (d) Rs. 5,000 for damages claimed by a customer has been disputed by the firm. It was settled at 70% by a compromise between the customer and the firm. July 25, 2022 Leave a Reply Cancel replyYou must be logged in to post a comment.