Question

What is the Journal entry for: Cost of sanctioned plan paid to the local municipality ₹25000 Please please please please answer it fast

Answer 1

(a) Realisation A/c Dr. 12000

To Bank loan A/c 12000

(Being bank liability paid)

(b) Q's Capital A/c Dr. 16000

To Realisation A/c 16000

(Being stock taken over by Q)

(c) Realisation A/c Dr. 4000

To P's Capital A/c 4000

(Being creditor paid off by P)

(d) Bank A/c Dr. 1200

To Realisation A/c 1200

(Being realisation of unrecorded asset)

(e) Realisation A/c Dr. 2000

To Q's Capital A/c 2000

(Being expenses paid by Q)

(f) Realisation A/c Dr. 36000

To P's Capital A/c 20000

To Q's Capital A/c 16000

(Being profit on realisation distributed among the partners in the ratio of 5:4)

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