Question

SP.4
18. The firm of R, K and S was dissolved on 31st March, 2019. Pass necessary Journal entries
for the following after various assets (other than cash and Bank) and the third party
liabilities had been transferred to Realisation Account:
(i) K agreed to pay off his wife's loan of 6,000.
(ii) Total Creditors of the firm were * 40,000. Creditors worth 10,000 were given a piece
of furniture costing * 8,000 in full and final settlement. Remaining creditors allowed
a discount of 10%.
(iii) A machine that was not recorded in the books was taken over by Kat 3,000 whereas
its expected value was 5,000.
(iv) The firm had a debit balance of 15,000 in the Profit and Loss Account on the date of
dissolution​

Answer 1

Answer:

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