Question

Pass necessary Journal entries for the following transactions on the dissolution of
the form of A and B after the various assets (other thun ensh) and outside liabilities
have been transferred to Realisation Account:
(1) A agreed to pay off his wife's loan of + 20,000.
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(iii) B took over investmentant 15,000
(iv) Sundry Creditors amounting to 10,000 wore paid at 5% discount
(u) Loss on realisation R 9.400 was livided between A and B in 3 2 ratio,​

Answer 1

Answer:

1. Realisation account. dr 20000

To A capital account. 20000

2. B capital. dr. 15000

To Realisation account. 15000

,3. Realisation account. dr 9500.

To bank account. 9500

4 A capital. account. dr. 5640

B capital account. dr. 3760

To Realisation acc 9400