Question

Priya was a partner in a firm. On the date its dissolution, her loan was appearing on the liability side of the balance sheet at ₹ 25,000. Priya accepted an unrecorded asset of ₹ 17,500 and the balance was paid to her in cash.

Give the Journal entry for the above transaction.

Answer 1

Date	Particulars	L.F.	Debit (₹)	Credit (₹)
	Priya’s Loan A/c   ...Dr.		25,000	-
	To Realisation A/c		-	17,500
	To Bank A/c		-	7,500