Hi..in dissolution of partnership,what should be done when in the adjustments it is given debtor of 50,000 are due within 3 months but offered 5% for paying immedietly....pleaase explain what should be done if the same thing comes for creditors as well.

Dear Student,
Here is your answer,
For your adjustment the following adjustment will be done in case of debtors:
     Bank A/c dr. 47500
            To Realisation A/c. 47500
( Debtors realised at 5% discount)

But in case of creditors, if it is paid after 5% discount, then the following entry will be passed :
     Realisation a/c      Dr.  47500
               To Bank a/c                      47500
(Being creditors paid at 5% discount)
 

Regards.