Page 181 - DEBKVOL-1

8.6 Double Entry Book Keeping—CBSE XII
(iii) Shiva took over all Investments at ` 13,300.
(iv) Sundry Creditors ` 10,000 were paid at 9% discount.
(v) Realisation expenses ` 3,400 were paid by Sudha for which she was allowed
` 3,000.
(vi) Loss on realisation ` 9,400 was divided between Sudha and Shiva in 3 : 2 ratio. (AI 2011)
Solution: JOURNAL

Date Particulars L.F. Dr. (`) Cr. (`)
(i) Realisation A/c ...Dr. 19,000
To Sudha’s Capital A/c 19,000
(Sudha’s husband loan taken by Sudha)
(ii) Bank A/c ...Dr. 7,500
To Realisation A/c 7,500
(Bad debts recovered)
(iii) Shiva’s Capital A/c ...Dr. 13,300
To Realisation A/c 13,300
(Investments taken by Shiva)
(iv) Realisation A/c ...Dr. 9,100
To Bank A/c 9,100
(Sundry creditors settled)
(v) Realisation A/c ...Dr. 3,000
To Sudha’s Capital A/c 3,000
(Realisation expenses borne by Sudha)
(vi) Sudha’s Capital A/c ...Dr. 5,640
Shiva’s Capital A/c ...Dr. 3,760
To Realisation A/c 9,400
(Loss on realisation transferred to Partners’ Capital Accounts)
Illustration 4.
Disha, Mohit and Nandan are partners. They decide to dissolve their firm. Pass necessary
Journal entries for the following after various assets (other than Cash and Bank) and the third
party liabilities have been transferred to Realisation Account.
(i) An old typewriter which was not recorded in the books was sold for ` 2,000 whereas its
expected value was ` 5,000.
(ii) Stock of ` 70,000 was taken by Disha at a discount of 30%.
(iii) Total creditors of the firm were ` 20,000. A creditor for ` 2,000 was untraceable and other
creditors accepted payment allowing 10% discount.
(iv) Mohit paid realisation expenses of ` 18,000 out of his private funds, who was to get
remuneration of ` 13,000 for completing the dissolution process and was responsible to
bear all realisation expenses.
(v) Nandan had taken a loan of ` 50,000 from the firm, which was paid fully by him to
the firm.
(vi) ` 12,000 were recovered from a Debtor which was written off as Bad Debts last year.
(Delhi 2012 C)