Question

Record necessary journal entries in the following cases:
(a) Creditors worth ₹ 85,000 accepted ₹ 40,000 as cash and Investment worth ₹ 43,000, in full settlement of their claim.
(b) Creditors were ₹ 16,000. They accepted Machinery valued at ₹ 18,000 in settlement of their claim.
(c) Creditors were ₹ 90,000. They accepted Building valued at ₹ 1,20,000 and paid cash to the firm ₹ 30,000.

Answer 1

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The outcome of politics of social divisions

depends on how the political leaders raise the

demands of any community". Explain the

statement

Answer 2

Answer:

As per the journal,

(A) An amount of Rs. 40000 has been debited from the Realisation account and it has been credited to cash A/c.

This is being the creditors worth Rs. 85,000 accepted 40,000 as cash and investment worth Rs. 43,000 in full settlement.

(B) No entry.

This is being the Creditors worth Rs.16,000 accepted Machinery worth Rs.18,000 in full settlement. No entry as both asset and liability are already transferred to the Realisation Account.

(C) An amount of Rs. 30000 has been debited from the Cash account and it has been credited to the Realisation A/c

This is being the creditors worth Rs.90,000 accepted Building worth Rs.1, 20,000 and paid back Rs.30,000 as cash after settlement of claim to the firm.