Accountancy, asked by miteshdarji03, 7 days ago

Sohan and Rohan decided to dissolve their firm and convert it into an Ltd company. Their assets were Rs.2,20,000 and trade liabilities Rs.60,000. Purchase price is agreed at Rs.1,80,000. Expenses amounted to Rs.10,000, paid by the firm. Calculate realisation profit or loss from realisation A/C.​

Answers

Answered by ansarikahekasha45
0

Answer:

S.N.

Particulars

L.F.

Debits

Amount

Rs

Credit

Amount

Rs

(a)

Realisation A/c

Dr.

1,500

To Cash A/c

1,500

(Realisation expenses paid)

(b)

Realisation A/c

Dr.

600

To Mohan’s Capital A/c

600

(Realisation expenses paid by Mohan)

(c)

Realisation A/c

Dr.

2,000

To Mohan’s capital A/c

2,000

(Commission allowed to Mohan on dissolution of the firm)

(d)

No entry

No journal entry is passed because both motor car and creditors accounts have already been transferred to Realisation Account and nothing is recovered or paid in terms of Cash and Bank

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