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
1. sudha agreed to pay off her husband's loan Rs.19000
2 a debtor who oews a debt of Rs.9000 was written off inthe books paid Rs.7500 in full settlement
3.realisation expenses Rs.3400 were paid by sudha for which she was allowed Rs.3000
4. sundry creditors took stock worth Rs.10000
Thumb-up to Piyush for correct answer.
For 4 adjustment i.e. Creditors took over stock worth Rs 10,000, no Journal Entry has been passed because a liability has been paid through an asset. For one entry Realisation A/c should be debited and for other it should be credited.
Therefore, debit and credit Realisation A/c nullify its effect.
Hence, no entry has been passed.
For 4 adjustment i.e. Creditors took over stock worth Rs 10,000, no Journal Entry has been passed because a liability has been paid through an asset. For one entry Realisation A/c should be debited and for other it should be credited.
Therefore, debit and credit Realisation A/c nullify its effect.
Hence, no entry has been passed.