(HOTS)
D) Open T shape accounts of DEBTORS, CREDITORS, CASH, and CAPITAL and write the following
transactions on proper side
1) Cash sales for Rs 10000.
2) Sold goods costing Rs 10000 for Rs 12000 on credit.
3) Paid rent Rs 500.
Answers
Explanation:
ANSWER
(a) P's Capital A/C..... Dr. 90000
Bank A/C.... Dr. 125000
To Realisation A/C 215000
(Being stock taken over by P and rest sold off)
(b)(i) Bank A/C..... Dr. 225000
To Realisation A/C 225000
(Being debtors realised)
(ii) Realisation A/C..... Dr. 5000
To Bank A/C 5000
(Being provision sold off after book debts proved bad)
(c) Bank A/C..... Dr. 1470000
To Realisation A/C 1470000
(Being land and building sold after charging 2% commission on sale)
(d) No entry will be passed as no bank or cash is involved.
(e) Bank A/C..... Dr. 75000
To Realisation A/C 75000
(Being investments realised at 125%)
(f) No entry will be passed for goodwill as well as prepaid fire insurance as it has not realised any amount.
(g) Bank A/C..... Dr. 10000
To Realisation A/C 10000
(Being unrecorded asset realised)
(h) Bank A/C.... Dr. 12000
To Realisation A/C 12000
(Being bad debt recovered @ 60%)
(i) Realisation A/C.... Dr. 50000
To P's Capital A/C 50000
(Being Mrs. P's loan discharged by Mr. P)
(j) (1) Realisation A/C.... Dr. 10000
To Bank A/C 10000
(Being creditors paid in cash after discount of Rs. 16000)
(2) Realisation A/C..... Dr. 72000
To Bank A/C 72000
(Being creditors paid 90%)
Answer:
The above answer is absolutely right dear......