Question

Pass journal entries on reconstitution of firm of Raja and Sumit: 1. There was an old laptop which had been written off completely. It was estimated to realize at Rs. 7,600. It was taken away by Raja at 25% less than the estimated price. 2. Loss on revaluation was Rs.54,000 . 3. Creditor of Rs. 50,000 took over stock of Rs. 30,000 at 10% discount plus a computer of Rs.12,000 at a discount of 20% and the balance was paid to them in cash.​

Answer 1

Answer:

(a) Bank A/C....... Dr. 3000

To Realisation A/C 3000

(Being unrecorded furniture sold off)

(b) Bank A/C...... Dr. 600

To Realisation A/C 600

(Being cash received on recovery of 60% of bad debt)

(c) Para's Capital A/C..... Dr. 30000

To Realisation A/C 30000

(Being unrecorded asset taken over by Para)

(d) Priya's Capital A/C..... Dr. 300

To Realisation A/C 300

(Being unrecorded asset taken over by Priya at a discount of 25%)