The sundry creditors of Rs. 70,000 are paid off at a discount of 10,000 rupees. The journal entry is-

Realisation A/c Dr. 60,000

To Bank A/c 60,000

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Realisation A/c Dr. 60,000

To Creditors A/c 60,000

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Realisation A/c Dr. 80,000

To Bank A/c 80,000

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Realisation A/c Dr. 80,000

To Creditors A/c 80,000

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Solution

The correct option is A
Realisation A/c Dr. 60,000

To Bank A/c 60,000

The sundry creditors of Rs 70,000 are paid off at a discount of 10,000 rupees. The journal entry is-

Realisation A/c Dr. 60,000

To Bank A/c, 60,000

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Similar questions

Pass the necessary journal entries for the following transactions on the dissolution of the firm of Sudha and Shiva after the various assets (other than cash) and outside liabilities have been transferred to Realisation Account :

(i) Sudha agreed to pay off her husband's loan Rs. 19,000.

(ii) A debtor whose debt of Rs. 9,000 was written off in the books paid Rs. 7,500 in full settlement.

(iii) Shiva took over all investments at Rs. 13,300.

(iv) Sundry creditors Rs. 10,000 were paid at 9% discount

(v) Realisation expenses Rs. 3,400 were paid by Sudha for which she was allowed Rs 3,000.

(vi) Loss on realisation Rs. 9,400 was divided between Sudha and Shiva in 3 : 2 ratio.

Q. Sonam keeps his books on single entry and provides you with the following information:

	31-12-2017	31-12-2018
	₹	₹
Furniture and Fitting	50,000	60,000
Stock	30,000	10,000
Sundry Debtors	60,000	70,000
Sundry Creditors	20,000	NIL
Prepaid Expenses	NIL	2,000
Outstanding Expenses	6,000	10,000
Cash in hand	11,000	3,000
Receipts and Payments in 2018:
Receipts from Debtors		2,10,000
Paid to Creditors		1,00,000
Cartage		20,000
Drawings		1,20,000
Sundry Expenses		1,60,000
Furniture Purchased for Cash		10,000

Prepare Trading and Profit & Loss Account for the year ended 31 December, 2018 after providing for bad debts at 10%.
There was a considerable amount of Cash Sales.

Q. Pass necessary journal entries for the following transactions in the books of Rajan Ltd :
(a) Rajan Ltd. purchased machinery of Rs 7,20,000 from Kundan Ltd. The payment was made to Kundan Ltd. by issue of equity shares of Rs 100 each at 10% discount.
(b) Rajan Ltd purchased a running business from Vikas Ltd. for a sum of Rs 2,50,000 payable as Rs 2,20,000 in fully paid equity shares of Rs 10 each and balance by a bank draft. The assets and liabilities consisted of the following :
Plant & Machinery Rs 90,000; Building Rs 90,000; Sundry Debtors Rs 30,000; Stock Rs 50,000; Cash Rs 20,000; Sundry Creditors Rs 20,000.

Vinod owed Rs.10,000 to Mohan. Mohan wrote a bill of exchange for Rs.10,000 on Vinod for three months, which was duly accepted by Vinod. Mohan discounted the bill with Bank at a discount of Rs.100. On maturity, Bill was dishonoured. Bank paid Rs.20 as noting charges. Pass journal entries in the books of Mohan.

Q. Question : From the following information calculate the Amount to be paid to creditors

	(Rs)
Sundry creditors as on March 31, 2005	$1, 80, 425$
Discount received	$26, 000$
Discount allowed	$24, 000$
Return outwards	$37, 200$
Return Inward	$32, 200$
Bills accepted	$1, 99, 900$
Bills endorsed to creditors	$26, 000$
Creditors as on April 1, 2006	$2, 09, 050$
Total Purchase	$8, 97, 000$
Cash Purchase	$1, 40, 000$

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The sundry creditors of Rs. 70,000 are paid off at a discount of 10,000 rupees. The journal entry is-

The correct option is A Realisation A/c Dr. 60,000 To Bank A/c 60,000 The sundry creditors of Rs 70,000 are paid off at a discount of 10,000 rupees. The journal entry is- Realisation A/c Dr. 60,000 To Bank A/c, 60,000

The correct option is A
Realisation A/c Dr. 60,000

To Bank A/c 60,000

The sundry creditors of Rs 70,000 are paid off at a discount of 10,000 rupees. The journal entry is-

Realisation A/c Dr. 60,000

To Bank A/c, 60,000