CameraIcon
CameraIcon
SearchIcon
MyQuestionIcon


Question

The book value of assets (other than cash and bank) transferred to Realisation Account is Rs 1,00,000. 50% of the assets are taken over by a partner Atul, at a discount of 20%; 40% of the remaining assets are sold at a profit of 30% on cost; 5% of the balance being obsolete, realised nothing and remaining assets are handed over to a Creditor, in full settlement of his claim.

You are required to record the journal entries for Realisation of assets.


Solution

 

 

Journal

 

 

Particulars

L.F.

Amount

Rs

Amount

Rs

Realisation A/c

Dr.

 

1,00,000

 

To Sundry Assets A/c

 

 

 

1,00,000

(Assets other than cash and bank transferred to Realisation Account)

 

 

 

 

 

 

 

 

 

Atul’s Capital A/c

Dr.

 

40,000

 

To Realisation A/c

 

 

 

40,000

(Atul took over 50% of assets worth Rs 1,00,000 at 20% discount)

[1,00,000 × (50/100) × (80/100)]

 

 

 

 

 

 

 

 

 

Bank A/c

Dr.

 

26,000

 

To Realisation A/c

 

 

 

26,000

(Assets worth Rs 20,000, i.e. 40% of assets of Rs 50,000 are sold

at a profit of 30%) [50,000 × (40/100) × (130/100)]

 

 

 

 

 

 

 

 

No entry is made for obsolescence of the assets and the assets given

to the creditors in the full settlement as these are already transferred to

the Realisation Account and adjusted)

 

 

 

 

 

 

 

 

 

 


Accountancy
Partnership Accounts
Standard XII

Suggest Corrections
thumbs-up
 
0


similar_icon
Similar questions
View More


similar_icon
Same exercise questions
View More


similar_icon
People also searched for
View More



footer-image