What journal entries would you pass in the following cases?
(a) Expenses of realisation ₹ 1,500.
(b) Expenses of realisation ₹ 600 but paid by Mohan, a partner.
(c) Mohan, one of the partners of the firm was asked to look into the dissolution of the firm for which he was allowed a commission of ₹ 2,000.
(d) Motor car of book value ₹ 50,000 taken over by creditors of the book value of ₹ 40,000 in full settlement.
Answers
Answer:
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Answer:
As per the journal,
(A) An amount of Rs. 1500 has been debited from the Realisation account and it has been credited to Cash A/c.
This is being the realisation expenses paid.
(B) An amount of Rs. 600 has been debited from the Realisation account and it has been credited to the Mohan's Capital A/c
This is being realisation expenses paid by Mohan.
(C) An amount of Rs. 2000 has been debited from the Realisation account and it has been credited to Mohan Capital A/c
This is being the commission allowed to Mohan on dissolution of the firm.
(D) No journal entry need to be passed as motor car and creditors have ellready been transferred to Realization A/c)
