Question

In case of dissolution, total creditors of the firm were Rs40,000; creditors worth Rs10000 were give a piece of furniture costing Rs8000 in full and final settlement. Remaining creditors allowed a discount of 10%. What will be the amount with which cash will be credited in the realization account for payment to creditors:​

Answer 1

Answer:

(a) Realisation A/C.... Dr. 6000

To Kunal's Capital A/C 6000

(Being Kunal's wife's loan discharged off by Kunal)

(b) Realisation A/C.... Dr. 27000

To Bank A/C 27000

(Being creditors [30000 - 10%] paid off)

(c) Rohit's Loan A/C.... Dr. 70000

To Bank A/C 70000

(Being Rohit's loan paid off)

(d) Kunal's Capital A/C.... Dr. 3000

To Realisation A/C 3000

(Being unrecorded asset taken over by Kunal)

(e) Rohit's Capital A/C.... Dr. 5000

Kunal's Capital A/C.... Dr. 5000

Sarthak's Capital A/C.... Dr. 5000

To Profit and Loss A/C 15000

(Being profit and loss transferred to the partner's capital accounts)

(f) Realisation A/C.... Dr. 15000

To Sarthak's Capital A/C 15000

(Being remuneration paid to Sarthak for realisation expenses)