Question

7. Chander and Naresh were partners in a firm sharing profits in 3 :2 ratio. On

28.2.2020 their firm was dissolved. After the transfer of various assets (other

than cash) and third party liabilities to Realisation Account, the following

transactions took place:

1. A machine that was not recorded in the books was taken over by

Chander at Rs.3,000 whereas its expected value was Rs.5,000.

2. Total creditors of the firm were Rs.40,000. Creditors worth Rs.10,000

were given a piece of furniture costing Rs.8,000 in full and final

settlement. Remaining creditors allowed a discount of 10%.

3. Expenses of realisation Rs. 1,200 were paid by Naresh.

4. Loss on dissolution was Rs.3,400.

Pass necessary journal entries for the above transactions in the books of

the firm.​

Answer 1

Answer:

Explanation:

Transaction 1 --> chander capital A/C      Dr.3000

                                              To realisation A/C.               3000

                    ( Being asset taken over by chander)