there was a credit balance of a's loan of 10,000 which was paid at the time of dissolution for 9500 in full settlement
Dear student
The journal Entry would be as below
A's Loan A/c....................................... Dr 10000
To Cash A/c 9500
To Realisation A/c 500
(Being A's loan Rs 10000 paid at full
settlement of 9500)
Regards
The journal Entry would be as below
A's Loan A/c....................................... Dr 10000
To Cash A/c 9500
To Realisation A/c 500
(Being A's loan Rs 10000 paid at full
settlement of 9500)
Regards