Question

Ravi and Mukesh were partners in a firm sharing profit and losses equally. On 31st March, 2019 their firm was dissolved. On the date of dissolution their Balance Sheet showed stock of ₹ 60,000 and creditors of ₹ 70,000. After transferring stock and creditors to realisation account the following transactions took place:

1. Ravi took over 40% of total stock at 20% discount.
2. 30% of total stock was taken over by creditors of ₹ 20,000 in full settlement.
3. Remaining stock was sold for cash at a profit of 25%.
4. Remaining creditors were paid in cash at a discount of 10%.

Pass necessary journal entries for the above transactions in the books of the firm.

Answer 1

Journal Entries
Date	Particulars	L.F.	Debit (₹)	Credit (₹)
(i)	Ravi’s Capital A/c    ...Dr.		19,200	-
	To Realisation A/c		-	19,200
	(Being Ravi took over 40% stock at 20% discount)
(ii)	No Entry		-	-
(iii)	Cash A/c    ...Dr.		22,500	-
	To Realisation A/c		-	22,500
	(Being 30% stock sold at 25% Profit)
(iv)	Realisation A/c    ...Dr.		45,000	-
	To Cash A/c		-	45,000
	(Being Remaining Creditors paid at 10% discount)