Question

A fimm under dissolution has already transferred its assets (other than cash) and outside
liabilities to Realisation Account Firm has two partners X and Y. What entries
will be passed for thie following transactions?
(a) There is furniture of Rs. 100.000 X took 50% of the furniture at 10%
discount and the remaining furniture was sold at 30% profit on the
book value.
Firm had unrecorded investment (Nominal value Ra. 40,000). 70% of
investmentwere sold at a loss of 20% and remaining were taken by X
a partner, at 90%.
@ Y's loan of Rs. 12,000 was discharged at Rs. 12,800.
One bill receivable for Rs. 10.000 under discount was dislionoured as the
acceptor had become insolvent and was vuable to pay hence the bill
had to be met by the firm.​

Answer 1

Answer:

(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)