Question

17. Loan from M 2,000 is 2 points
discharged by investment
of 3,000. The loss on
investment is​

Answer 1

Answer:

discount of Rs. 16,000.

Remaining trade creditors were paid 90% in final settlement

Share

Study later

ANSWER

(a) P's Capital A/C..... Dr. 90000

Bank A/C.... Dr. 125000

To Realisation A/C 215000

(Being stock taken over by P and rest sold off)

(b)(i) Bank A/C..... Dr. 225000

To Realisation A/C 225000

(Being debtors realised)

(ii) Realisation A/C..... Dr. 5000

To Bank A/C 5000

(Being provision sold off after book debts proved bad)

(c) Bank A/C..... Dr. 1470000

To Realisation A/C 1470000

(Being land and building sold after charging 2% commission on sale)

(d) No entry will be passed as no bank or cash is involved.

(e) Bank A/C..... Dr. 75000

To Realisation A/C 75000

(Being investments realised at 125%)

(f) No entry will be passed for goodwill as well as prepaid fire insurance as it has not realised any amount.

(g) Bank A/C..... Dr. 10000

To Realisation A/C 10000

(Being unrecorded asset realised)

(h) Bank A/C.... Dr. 12000

To Realisation A/C 12000

(Being bad debt recovered @ 60%)

(i) Realisation A/C.... Dr. 50000

To P's Capital A/C 50000

(Being Mrs. P's loan discharged by Mr. P)

(j) (1) Realisation A/C.... Dr. 10000

To Bank A/C 10000

(Being creditors paid in cash after discount of Rs. 16000)

(2) Realisation A/C..... Dr. 72000

To Bank A/C 72000

(Being creditors paid 90%)

Answer 2

Answer:

The amount of the loss is 1,000

Explanation:

In this question, we have to calculate the amount of the loss on the discharge of the loan. Firstly we know the meaning of the loan, a loan is the amount of money that a person borrows from the other person by paying a certain amount of interest on the borrowed amount. The discharging of the loan means clearing the all amount loan. The amount of the loan is 2,000 and the investment is 3,000. Now in this to calculate the amount of the loss on the discharging of the loan we subtract the amount of the loan from the amount of investment.

Calculation of loss:

$Amount of loss= Investment Amount- Loan Amount$

$=3,000-2,000\\=1,000$

Hence, the amount of the loss is 1,000.

#SPJ3