Question

Pass necessary Journal entries for the following transaction on dissolution of the firm of Anita and Ravi on 31st March 2018, after the various assets (other than cash) and the third party liabilities have been transferred to Realisation A/c. Amitesh, an old customer whose account for ₹ 60,000 was written off as bad debt in the previous year, paid 90%.

Answer 1

Answer:

Bank Account. Dr. 54000

To Realisation account. 54000

{Being 90% recovered}.

Answer 2

Answer:

Explanation:

                               Journal entries                                                                    

Ravi capital A/c           23000

 To Realization A/c                      23000

Realization A/c           1000

  To cash A/c                                     1000

Bank A/c                        54000

  To Realization A/c                            54000

Bank A/c                          3000000

  To realization A/c                                  3000000

Realization A/c                   6000

  To Broker A/c                                                 6000