Question

Janani, Janaki and Jamuna are partners sharing profits and losses in the ratio of 3:3:1 respectively. Janaki died on 31st December, 2017. Final amount due to her showed a credit balance of ₹ 1,40,000. Pass journal entries if,

1. The amount due is paid off immediately.
2. The amount due is not paid immediately.
3. ₹ 75,000 is paid and the balance in future.

Answer 1

Journal Entries

Particulars	L.F.	Debit	Credit
Janaki's executors A/c  Dr.     To Bank A/c (Amount due is paid off immediately)		1,40,000	1,40,000
Janaki's executors A/c  Dr.     To Janaki's executors loan A/c (Amount due is not paid immediately)		1,40,000	1,40,000
Janaki's executors A/c  Dr.      To Bank A/c      To Janaki's executors loan A/c (₹ 75,000 is paid and the balance in future)		1,40,000	75,000 65,000