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Record Necessary Journal Entries to Record the Following Unrecorded Assets and Liabilities in the Books of Paras and Priya - Accountancy

Journal Entry

Record necessary journal entries to record the following unrecorded assets and liabilities in the books of Paras and Priya:
1. There was an old furniture in the firm which had been written-off completely in the books. This was sold for Rs 3,000,
2. Ashish, an old customer whose Account for Rs 1,000 was written-off as bad in the previous year, paid 60%, of the amount,
3. Paras agreed to take over the firm’s goodwill (not recorded in the books of the firm), at a valuation of Rs 30,000,
4. There was an old typewriter which had been written-off completely from the books. It was estimated to realize Rs 400. It was taken away by Priya at an estimated price less 25%,
5. There were 100 shares of Rs 10 each in Star Limited acquired at a cost of Rs 2,000 which had been written-off completely from the books. These shares are valued @ Rs 6 each and divided among the partners in their profit sharing ratio.

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Solution

 Books of Paras and Priya
Journal Entries

  Particulars L.F.

Amount (Rs.)

Amount (Rs.)
1) Bank A/c                                  Dr.
      To Realisation A/c
(Unrecorded furniture sold)
  3,000 3,000
2) Bank A/c                          Dr.
      To Realisation A/c
(Bad Debt recovered which was previously written off as bad)
  600 600
3) Paras’s Capital A/c          Dr.
      To Realisation A/c
(Unrecorded goodwill taken over by Paras)
  30,000 30,000
4) Priya’s Capital A/c           Dr.
      To Realisation A/c
(Unrecorded Typewriter estimated Rs 400 taken over by Priya at 25% less price)
  300 300
5) Paras’s Capital A/c              Dr.
Priya’s Capital A/c               Dr.
      To Realisation A/c
(100 shares of Rs 10 each  which were not recorded in the books  taken @ Rs 6 each by Paras and Priya and divided between them in their profit sharing ratio)
  300
300
600
Concept: Accounting Treatment of Bill - Journal Entries and Ledger
  Is there an error in this question or solution?
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APPEARS IN

NCERT Class 12 Accountancy - Not-for-profit Organisation and Partnership Accounts
Chapter 5 Dissolution of Partnership Firm
Exercise | Q 8 | Page 250
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