Question

50% of furniture is taken over by Nash at 25000 and remaining furniture realised at 80% of book value​

Answer 1

(a) Bank A/c Dr. 32500

Aman's Capital A/c Dr. 22500

To Realisation A/c 55000

(Being 50% of asset sold at 30% profit and 50% of asset taken over by Aman at 10% discount)

(b) Profit and Loss A/c Dr. 15000

To Aman's Capital A/c 7500

To Harsh's Capital A/c 7500

(Being profit and loss distributed among partners equally)

(c) Harsh's Loan A/c Dr. 6200

To Bank A/c 6200

(Being Harsh's loan paid off)

(d) Harsh's Capital A/c Dr. 5000

To Bank A/c 5000

(Being realisation expenses borne by the firm on behalf of Harsh)

(e) Bank A/c Dr. 300

To Realisation A/c 300

(Being bad debt recovered @25%)

(f) Realisation A/c Dr. 1250

To Bank A/c 1250

(Being cash given to discharge creditors)