on dissolution of a partnership firm out of total debtors of ₹50000, ₹2000 became bad debts and rest realised 70% which account will be debited by what amount
Answers
Answer:
Explanation:
(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%)