Question

At the time of dissolution of a partnership firm, the book value of sundry assets transferred to Realisation Account was ₹ 2,00,000. 50% of these sundry assets were taken by partner A at 20% discount, 40% of remaining assets were sold at a profit of 30% on cost. 5% of the balance was found obsolete and realised nothing. The remaining assets were taken over by a creditor in full settlement of his claim.

Pass necessary journal entry for the above.

Answer 1

Journal entry
Date	Particulars	L.F.	Dr. (₹)	Cr. (₹)
	A’s Capital A/c    ...Dr.		80,000	-
	Bank A/c    ...Dr.		52,000	-
	To Realisation A/c		-	1,32,000
	(Being Assets realised on dissolution)