Question

Singh and Jain were partners in a firm sharing profits and losses in the ratio of 3:7. On 31st March,2019,

their firm was dissolved. On that date the Balance Sheet showed a stock of ₹ 90,000 and creditors

of ₹ 1,00,000. After transferring the assets and liabilities to the realisation account, the following

transactions took place:

i. Singh took over 50% of the total stock at 10% discount.

ii. 20% of the total Stock was taken over by creditors of ₹ 20,000 in full settlement.

iii. Remaining stock was sold at 10% loss.

iv. 40% of the remaining creditors were paid by cheque at a discount of 5% and the balance were

taken by Partner Hari.

Journalise in the books of the firm.​

Answer 1

Answer:

According to Section 48 of The Indian Partnership Act, 1932, first of all the payment of Rs 20,000 will be made for Mrs A’s loan as she is an outsider, then remaining Rs 5,000 will be paid to B against his loan of Rs 10,000