What will be the Journal Entries of this transactions???
Realisation a/c Dr. 9,000
To Kavita's Capital a/c 9,000
(Being Dissolution expenses agreed to be made by her)
Kavita's Capital a/c Dr. 9,000
To Realisation a/c 9,000
(Being Furniture taken over by her)
As noth of them are opposite entries of each other, each entry nullifies the effect of the another, thus leading to No Entry.
Therefore, No Entry.
To Kavita's Capital a/c 9,000
(Being Dissolution expenses agreed to be made by her)
Kavita's Capital a/c Dr. 9,000
To Realisation a/c 9,000
(Being Furniture taken over by her)
As noth of them are opposite entries of each other, each entry nullifies the effect of the another, thus leading to No Entry.
Therefore, No Entry.