Aniket, Chahat and Priyam were partners in a firm sharing profits in the ratio of 3:2:1. The firm was dissolved on 31.3.2020. Pass the necessary journal entries for the following transactions after various assets (other than cash and bank) and third party liabilities had been transferred to the realisation account: a. The firm had stock of ₹2, 00,000. Chahat took over 40% of the stock at a discount of 20% and the remaining stock was sold at a profit of 30% on cost. b. Aniket’s wife's loan of ₹ 1, 00,000 was paid off along with interest of ₹ 10,000. c. Priyam’s loan of ₹ 20,000 was settled at ₹ 18,500. d. A liability under a suit for damages including in creditors was settled at ₹ 32,000 as against only ₹ 13,000 was provided in the books. Total creditors of the firm were ₹ 50,000 e. A bill of ₹ 50,000 discounted with bank was dishonoured by acceptor and the same had to be met by the firm f. Profit of realisation amounts to ₹ 30,000
Answers
Answer:
ACCOUNTANCY IS A TYPICAL & COMPLEX SUBJECT
Answer:
Journal
Particulars Dr. (₹) Cr. (₹)
(i)Ankit’s Capital A/c Dr. 32,000
To Realisation A/c 32,000
(Being stock taken over by Ankit)
Bank/ Cash A/c Dr . 52,000
To Realisation A/c 52,000
(Being stock sold at a profit)
(ii) Realisation A/c Dr. 69,000
To Bank/ Cash A/c 69,000
(Being payment made to creditors)
(iii) Realisation A/c Dr . 22,000
To Bank/ Cash A/c 22,000
(Being Bobby’s sister’s loan paid along with interest)
(iv) Kartik’s loan A/c Dr. 12,000
Realisation A/c Dr. 500
To Bank/ Cash A/c 12,500
(Being Kartik’s loan settled)
Explanation: