Question

Jain and Gupta were partners in a firm sharing profits and losses in the ratio of 7:3. On 31st March, 2024, the firm was dissolved. After transferring various assets (other than cash ₹6,400) and the third-party liabilities to Realisation Account, the following transactions took place:

(i) Debtors ₹80,000 were taken over by a debt collection agency at 10% discount.

(ii) Creditors amounting to ₹40,000 were taken over by Jain.

(iii) Realisation expenses amounted to ₹5,100, which were paid by Gupta.

Pass necessary journal entries for the above transactions in the books of Jain and Gupta.

Marks-3, CBSE: 2024-25/Zone-7/Set-1/Q-17