Land and Building (book value) ₹ 1,60,000 sold for ₹ 3,00,000 through a broker who charged 2% commission on the deal. Journalise the transaction, at the time of dissolution of the firm.

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Solution

In the books of the firm

Journal

Date

Particulars

L.F.

Debit
Amount

(₹)

Credit
Amount

(₹)

On the
Cash/ Bank A/c (3,00,000 – 6,000)
Dr.

2,94,000

Date of
To Realisation A/c (3,00,000 – 6,000)

2,94,000

Dissolution
(Being amount realized from land and building after providing for 2% commission to the broker)

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Similar questions

Land and Building (book value) Rs. 1,60,000 sold for Rs. 3,00,000 through a broker who charged 2% commission on the deal. Journalise the transaction, at the time of dissolution of the firm.

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 Building (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 $%$

Q. Pass the Journal entries, for the following transactions on the dissolution of the firm of P and Q after various assets (other than cash) and outside liabilities have been transferred to Realisation Account
(a) Stock Rs. 2,00,000. 'P' took over 50% of stock at a discount of 10%. Remaining stock was sold at a profit of 25% on cost.
(b) Debtors Rs. 2,25,000. Provision for Doubtful Debts Rs. 25,000. Rs. 20,000 of the book debts proved bad.
(c) Land and Building (Book value Rs. 12,50,000) sold for Rs. 15,00,000 through a broker who charged 2% commission.
(d) Machinery (Book value Rs. 6,00,000) was handed over to a creditor at a discount of 10%
(e) Investment (Book value Rs. 60,000) ranted at 125%.
(f) Goodwill of Rs. 75,000 and prepaid fire insurance of 10,000.
(g) There was an old furniture in the firm which had been written off completely in the books. This was sold for Rs. 10,000.
(h) 'Z' an old customer whose account for Rs. 20,000 was written off as bad in the previous year, paid 60%.
(i) 'P' undertook to pay Mrs. P's loan of Rs. 50,000.
(j) Trade creditors Rs. 1,60,000. Half of the trade cretlitors accepted Plant and Machlnery at an agreed valuation of Rs. 54,000 and cash in full settlement of their claims after allowing a discount of Rs. 16,000.
Remaining trade creditors were paid 90% in final settlement

Q. Mr. Talwar sold a house to Mr. Khanna through a broker for ₹48 lakhs. The broker received 2% commission from both of them. How much commission did the broker receive overall?

Q. Tanya sold her flat in Delhi at a profit of 60%. She had purchased the flat for ₹40 Lakhs. She had sold it through a broker and paid him a commission of 5% on the profit she made. How much commission did the broker get?

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In the books of the firm Journal
Date	Particulars		L.F.	Debit Amount (₹)	Credit Amount (₹)
On the	Cash/ Bank A/c (3,00,000 – 6,000)	Dr.		2,94,000
Date of	To Realisation A/c (3,00,000 – 6,000)				2,94,000
Dissolution	(Being amount realized from land and building after providing for 2% commission to the broker)