The firm of R, K and S was dissolved on 31.3.2019. Pass necessary journal entries for the following after various assets (other than cash and Bank) and the third party liabilities had been transferred to realisation account.

(i) K agreed to pay off his wife’s loan of 6,000.

(ii) Total Creditors of the firm were 40,000. Creditors worth 10,000 were given a piece of furniture costing 8,000 in full and final settlement. Remaining creditors allowed a discount of 10%.

(iii) A machine that was not recorded in the books was taken over by K at 3,000 whereas its expected value was 5,000.

(iv) The firm had a debit balance of 15,000 in the profit and loss A/c on the date of dissolution.

Marks 4, CBSE:2019-20/Sample/Q-18