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

Determine the present value - annuity, Assume you are receiving an amount ...

Assume you are receiving an amount of Rs.5000 twice in a year for subsequent five years one time at the starting of the year and another amount of Rs. 5000 at the ending of the yea

Breach of trust-trusts laws and accounts, BREACH OF TRUST Remedies avai...

BREACH OF TRUST Remedies available to beneficiary: Injunction, Personal action, Criminal liability. Defence of trusts: He may be relieved from liability if, in the opini

Report on the management of foreign trade risks, Q. Report on the managemen...

Q. Report on the management of foreign trade risks? Your company is probable to face three types of risk in connection with its foreign trade. These are as: (1) Foreign exch

Example of abc analysis, Illustration: Dinesh Limited is looking selective...

Illustration: Dinesh Limited is looking selective control for its inventories. By using the subsequent datas, prepare the ABC plan. Items                 A           B

Prepaid expenses in the trial balance sheet, The following details are ta...

The following details are taken from the accounting records of the company as at 30 June 2010: Debit Credit Sales revenue 49,950,000

Application for grant-executorship laws and acccounts, APPLICATION FOR GRAN...

APPLICATION FOR GRANT 1) An application for a grant of representation ("representation" means the probate of a will or the grant of letters of administration) is made in such a

Discuss the pros and cons of financing in unhedged, You have the following ...

You have the following information about rates in London for Eurocurrency loans of one-year duration, the exchange rate between the USD and euros, the currency in which you want fi

Periodic inventory system, Under this system all stock levels are reviewed ...

Under this system all stock levels are reviewed after fixed time duration, depending upon the significance of the item. Imported items may need a shorter review cycle, while slow m

Balance Sheet & Statement of Cash Flows, I need some guidance in how certai...

I need some guidance in how certain events are to be recorded on both the balance sheet and statement of cash flows.

Maturity risk premiums , Suppose that the real risk-free rate, r*, is 4% an...

Suppose that the real risk-free rate, r*, is 4% and that inflation is usual to be 8% in Year 1, 5% in Year 2, and 4% thereafter. Suppose also that all Treasury securities are highl

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