pass necessary journal entries for the following transactions on the dissolution of the firm of sudha and Shiva after the various assets other than cash ans outside liabilities have been transferred to realisation account :
1. a debtor whose debt of rupees 9000 was written off in the books paid rupees 7500 in full settlement.
2. a bill receivable of rupees 2000 discounted with was dishonoured and the same was dishonoured and the same has to be met by the firm .
3. sudha agreed to pay off her husband's loan rupees 19000.
4. a creditors account of rupees 10000 was settled by giving him an asset of rupees 15000.
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EXPERT ANSWER: For 4 adjustment i.e. Creditors took over stock worth Rs 10,000, no Journal Entry has been passed because a liability has been paid through an asset. For one entry Realisation A/c should be debited and for other it should be credited.
Therefore, debit and credit Realisation A/c nullify its effect.
Hence, no entry has been passed.
Explanation:
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