Debtors were shown in balance sheet at Rs 80,000.

Debtors were realised at a discount of 7%.

The journal entry will be-

Bank A/c Dr 5600

To Realisation A/c 5600

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Realisation A/c Dr 5600

To Bank A/c 5600

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Bank A/c Dr 74400

To Realisation A/c 74400

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Realisation A/c Dr 74400

To Bank A/c 74400

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Solution

The correct option is C
Bank A/c Dr 74400

To Realisation A/c 74400

Debtors were shown in balance sheet at 80,000.

Debtors were realised at a discount of 7%.

Realisable value = 80,000 * (100% - 7% ) = 74,400

The journal entry will be-

Bank A/c Dr 74,400

To Realisation A/c 74,400

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Similar questions

Q. Debtors had a balance of 2,00,000. Debtors were realised at a discount of 13.5%. Hence, the realisation amount is Rs..

PRACTICAL PROBLEMS

Pannalal, Babulal and Hiralal were partners sharing profits and losses in the proportion of 2:2:1, following is their Balance Sheet as on 31^st March, 2008.

Balance Sheet as on 31^st March, 2008
Liabilities	Amount Rs	Assets		Amount Rs
Capital Accounts:		Machinery		25,000
Pannalal	30,000	Stock		10,000
Babulal	10,000	Debtors	27,500
Hiralal	10,000	Loss: R.D.D.	1,500	26,000
General Reserve	3,000	Investment		12,000
Creditors	20,000	Profit and Loss A/c		9,000
Pannalal’s Loan A/c	4,000	Bank		2,000
Bills payable	7,000
	84,000			84,000

On the above date the partners decided to dissolve the firm:

1) Assets were realised: Machinery Rs 22,500, Stock Rs 9,000, Investment Rs 10,500, Debtors Rs 22,500.

2) Dissolution expenses were Rs 1,500.

3) Goodwill of the firm realised Rs 12,000

Pass the necessary Journal entries in the books of the firm.

Q. A,B and C were partners sharing profit and losses in the proportion of 2:2:1. Following is their balance sheet as on

31^{s t}

March, 2013:
On the above date, the partners decide to dissolve the firm.
(1) Asset were realised as -
Machinery Rs. 22,500, stock Rs. 9,000, Investment Rs. 10,500, Debtors Rs. 22,500.
(2) Dissolution expenses were Rs. 1,500.
(3) Goodwill of the firm realised Rs. 12,000.
Pass the necessary Journal entries in the books of the firm.

Q. H's Trial Balance contains the following information:
Bad debts Rs. 3,000
Discount allowed Rs. 3,000
Provision for discount on debtors Rs.3,200
Provision for bad debts Rs. 3,500
Sundry Debtors Rs. 50,000
At the end of the year, it is desired to maintain a provision for bad debts at Rs. 4,000 and provision for discount on debtors at Rs. 2,000. Sundry Debtors will appear in the Balance Sheet at a figure of:

PRACTICAL PROBLEMS

A, B and C were partners sharing profits and losses in the ratio of 3:2:1. On 31^st March, 2010. Their Balance Sheet was as follows:

Balance Sheet as on 31^st March, 2010
Liabilities	Amount Rs	Assets		Amount Rs
Sundry Creditors	15,400	Cash at Bank		3,500
Bills payable	3,600	Stock		19,800
A’s loan A/c	10,000	Debtors	15,000
Capital Account:		Less: Provision	1,000	14,000
A	20,000	Join Life Policy		4,000
B	16,000	Plant and Machinery		43,700
C	8,000
Reserve Fund	12,000
	85,000			85,000

The firm was dissolved on 31^st March, 2010 and the assets realised as follows:

1) Join Life Policy was taken over by Mr. A at Rs 5,000.

2) Stock realised Rs 18,000, Debtors realised Rs 14,500, Plant and Machinery was sold for Rs 36,000.

3) Liabilities were paid in full. In addition one bill for Rs 700 under discount was dishonoured and had to be taken up by the firm.

4) There were no realisation expenses.

Give the Journal entries and necessary Ledger Accounts to close the books of the firm.

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Debtors were shown in balance sheet at Rs 80,000. Debtors were realised at a discount of 7%. The journal entry will be-

The correct option is C Bank A/c Dr 74400 To Realisation A/c 74400 Debtors were shown in balance sheet at 80,000. Debtors were realised at a discount of 7%. Realisable value = 80,000 * (100% - 7% ) = 74,400 The journal entry will be- Bank A/c Dr 74,400 To Realisation A/c 74,400

Debtors were shown in balance sheet at Rs 80,000.

Debtors were realised at a discount of 7%.

The journal entry will be-

The correct option is C
Bank A/c Dr 74400

To Realisation A/c 74400

Debtors were shown in balance sheet at 80,000.

Debtors were realised at a discount of 7%.

Realisable value = 80,000 * (100% - 7% ) = 74,400

The journal entry will be-

Bank A/c Dr 74,400

To Realisation A/c 74,400