Pass necessary journal entries on the dissolution of A and B after various assets(other than cash) and outside
liabilities have been transferred to Realisation a/c:
a) A agreed to pay off her husband loan of 20,000 at 21,000
b) A debtor whose debt of 9,000 was written off in the books as bad paid 7,500
c) B took over all investments at 18,000(b00k value 20,000)
d) Creditors of 15,000 took machinery worth 18,000 and paid cash
e) Realisation exp of 3,400 were paid by A for which he was allowed 3,000
f) Loss on realisation of 15,000 was distributed between A and B in 3:2.
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Answer:
realisation .... Dr. 21,000
to A's capital 21,000
cash... Dr. 7500
to realisation 7500
B's capital.... Dr. 18,000
to realisation 18,000
cash .... Dr. 3000
to realisation 3000
realisation... Dr 3000
to A's capital 3000
A's capital.. Dr 9000
B's capital... Dr. 6000
to realisation 15,000
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