Question

Pass journal entries for the following transactions, when relation accounts Is prepared.
A. B. C.
Dissolution expense paid Rs. 5000.
Sundry creditors Rs. 60,000, paid at 25% discount.
Book value of sundry assets is Rs. 2,70,000 and realized Rs. 2,27,000.

Answer 1

Answer:

For payment of dissolution expense :-

Realisation a/c. Dr. 5000

,To banka/c. 5000

for creditors :-

Realisation a/c. Dr. 45000

To Bank a/c. 45000

for assets :-

Banka/c. Dr. 227000

To bank a/,c. 227000