Question

Pass an opening entry:
Building Rs.5,00,000; Furniture Rs.2,00,000; Debtors Rs.1,20,000; Bank Loan Rs.1,00,000; Cash Rs.50,000; Creditors Rs.1,50,000; Bills Payable Rs.20,000 pass a journal entry

Answer 1

Answer:

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%)