The Stock had already been transferred to realisation A/c. Sohan a partner, he was allowed a remuneration of 39000 for process of dissolution. Sohan agreed to take over stock worth ®39000. What is journal entries.

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Answer

1. Realisation A/c    ..Dr.        39000         To Stock A/c.                          390002. Sohan's capital A/c  ..Dr    39000          To Realisation A/c.               39000

Answer

realisation dr.  to sohan cap  (for renumeration) sohan cap dr. to realisation ( for stock)

Answer

Journal Entries for Dissolution of Partnership

The dissolution of a partnership involves the settlement of all the assets and liabilities of the firm, including the distribution of profits and losses among the partners. In this scenario, the stock has already been transferred to the realization account, and Sohan, one of the partners, is entitled to a remuneration of ₹39,000 for his efforts in the process of dissolution. Sohan has also agreed to take over stock worth ₹39,000.

To record these transactions and ensure accurate accounting, the following journal entries need to be made:

1. Transfer of Stock to Realization Account:
- Realization A/c Dr. (with the value of the stock)
- To Stock A/c

This entry transfers the value of the stock from the Stock A/c to the Realization A/c. The Realization A/c will now include the value of the stock, which will be used for further settlement.

2. Recording Remuneration for Sohan:
- Realization A/c Dr. (with the value of Sohan's remuneration)
- To Sohan's Capital A/c

This entry recognizes the remuneration payable to Sohan for his services during the dissolution process. The amount is debited to the Realization A/c and credited to Sohan's Capital A/c.

3. Sohan Taking over Stock:
- Sohan's Capital A/c Dr. (with the value of the stock taken over)
- To Realization A/c

This entry accounts for the transfer of stock to Sohan. The value of the stock is debited to Sohan's Capital A/c, while the Realization A/c is credited.

Overall, the journal entries for the given scenario would be as follows:

1. Transfer of Stock to Realization Account:
- Realization A/c Dr. (with the value of the stock)
- To Stock A/c

2. Recording Remuneration for Sohan:
- Realization A/c Dr. (with the value of Sohan's remuneration)
- To Sohan's Capital A/c

3. Sohan Taking over Stock:
- Sohan's Capital A/c Dr. (with the value of the stock taken over)
- To Realization A/c

These journal entries ensure that the stock is properly accounted for in the realization process, Sohan's remuneration is recognized, and his capital account reflects the stock he has taken over. By following these steps, the dissolution of the partnership can be accurately recorded in the books of accounts.

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