Advertisement Remove all ads

Give Journal Entries for the Following Transactions: - Accountancy

Journal Entry

Give journal entries for the following transactions:
1. To record the Realisation of various assets and liabilities,
2. A Firm has a Stock of Rs 1,60,000. Aziz, a partner took over 50% of the Stock at a discount of 20%,
3. Remaining Stock was sold at a profit of 30% on cost,
4. Land and Buildging (book value Rs 1,60,000) sold for Rs 3,00,000 through a broker who charged 2%, commission on the deal,
5. Plant and Machinery (book value Rs 60,000) was handed over to a Creditor at an agreed valuation of 10% less than the book value,
6. Investment whose face value was Rs 4,000 was realised at 50%.

Advertisement Remove all ads

Solution

                Journal Entries

  Particulars L.F.

Amount (Rs.)

Amount (Rs.)
1 (a) For Transfer of Assets :
Realisation A/c                Dr.
    To Assets A/c (Individually)
(Assets transferred to Realisation Account)
  - -
(b) For Transfer of Liabilities :
Liabilities A/c (Individually)   Dr.
      To Realisation A/c
(Liabilities transferred to Realisation Account)
  - -
(c) For sale of Asset
Cash/Bank A/c            Dr.
      To Realisation A/c
(Assets sold)
  - -
(d)

For liabilitiy paid
Realisation A/c             Dr.
      To Cash/Bank A/c
(Liabilities paid)

  - -
2) Aziz’s Capital A/c         Dr.
      To Realisation A/c
(Aziz, a partner took over 50% of stock at 20% discount, the value of the total stock  was Rs 1,60,000) [1,60,000 × (50/100) × (80/100) = Rs 64,000]
  64,000 64,000
3) Bank A/c                      Dr.
    To Realisation A/c
(Stock worth Rs 80,000  sold at a profit of 30% on cost) [80,000 × (130/100 = Rs 1,04,000)]
  104,000 104,000
4) Bank A/c                       Dr.
  To Realisation A/c
(Land and Building sold for Rs 3,00,000 and 2% commission paid to the broker)
  294,000 294,000
5) No entry
(Plant and Machinery Rs 60,000 handed over to the creditors at a discount of 10%.  No entry is required as both the asset and liability are already transferred to the Realisation Account)
  - -
6) Bank A/c                       Dr.
     To Realisation A/c
(Investments worth Rs 4,000 were realised at 50%)
  2,000 2,000

NOTE: In this chapter, it has been assumed that all receiving and payments are made through bank.

Concept: Accounting Treatment of Bill - Journal Entries and Ledger
  Is there an error in this question or solution?
Advertisement Remove all ads

APPEARS IN

NCERT Class 12 Accountancy - Not-for-profit Organisation and Partnership Accounts
Chapter 5 Dissolution of Partnership Firm
Exercise | Q 5 | Page 249
Advertisement Remove all ads
Advertisement Remove all ads
Share
Notifications

View all notifications


      Forgot password?
View in app×