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

(i) Varun paid creditors 18,500 in full settlement of their claim of 20,000.

(ii) Vivek agreed to pay his wife’s loan of 70,000.

(iii) The firm had unrecorded investments of 2,00,000, which were sold at a loss of 20%.

(iv) The firm had stock of 1,00,000. Varun took over the stock at a discount of 10%.

(v) Reema, a debtor whose account for 2,000 was written off as a bad debt in the previous year, paid 70% of the amount.

(vi) Expenses of realisation 4,900 were paid by partner, Vivek. 

Marks-6, CBSE:2022-23/Zone-4/Set-1/Q-24

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