At the time of dissolution
of a partnership firm, the book
value of sundry assets
transferred to Realisation
Account was Rs. 2,00,000.
50% of these sundry assets
were taken by partner A at
20% discount, 40% of
remaining assets were sold at
a profit of 30% on cost. 5% of
the balance was found
obsolete and realised nothing.
The remaining assets were
taken over by a creditor in full
settlement of his claim. Pass
necessary journal entries for
the above.
Answers
1. Realisation A/C.... Dr. 100000
To Sundry Assets A/C 100000
(Being assets transferred to Realisation account)
2. Atul's Capital A/C..... Dr. 40000
To Realisation A/C 40000
(Being assets taken over by Atul)
[ Note: 50%of 100000= 50000
Discount= 20% of 50000= 10000
Hence, value after discount= 50000-10000
= 40000]
3. Bank A/C.... Dr. 26000
To Realisation A/C 26000
(Being assets sold)
[ Note: 40% of 50000= 20000
Profit= 30% of 20000= 6000
Hence, value after profit= 20000+6000
= 26000]
4. No entry is passed since creditors are handed over obsolete assets in full settlement of their claim.
I HOPE IT HELPS. ☺FOLLOW ME ✌
Answer:
dziknsjnsbx
Explanation:
Follow me ok