Pass the Journal entries for the following transactions on the dissolution of the firm of P and Q after various assets (other than cash) and outside liabilities have been transferred to Realisation Account:(a) Stock ₹ 2,00,000. 'P' took over 50% of stock at a discount of 10%. Remaining stock was sold at a profit of 25% on cost.(b) Debtors ₹ 2,25,000. Provision for Doubtful Debts ₹ 25,000. ₹ 20,000 of the book debts proved bad.(c) Land and Building (Book value ₹ 12,50,000) sold for ₹ 15,00,000 through a broker who charged 2% commission.(d) Machinery (Book value ₹ 6,00,000) was handed over to a creditor at a discount of 10%.(e) Investment (Book value ₹ 60,000) realised at 125%.(f) Goodwill of ₹ 75,000 and prepaid fire insurance of ₹ 10,000.(g) There was an old furniture in the firm which had been written off completely in the books. This was sold for ₹ 10,000.(h) 'Z' an old customer whose account for ₹ 20,000 was written off as bad in the previous year, paid 60%.(i) 'P' undertook to pay Mrs. P's loan of ₹ 50,000.(j) Trade creditors ₹ 1,60,000. Half of the trade creditors accepted Plant and Machinery at an agreed valuation of ₹ 54,000 and cash in full settlement of their claims after allowing a discount of ₹ 16,000. Remaining trade creditors were paid 90% in final settlement.

Pass the Journal entries for the following transactions on the dissolu

1.	Pass the Journal entries for the following transactions on the dissolution of the firm of P and Q after various assets (other than cash) and outside liabilities have been transferred to Realisation Account:(a) Stock ₹ 2,00,000. 'P' took over 50% of stock at a discount of 10%. Remaining stock was sold at a profit of 25% on cost.(b) Debtors ₹ 2,25,000. Provision for Doubtful Debts ₹ 25,000. ₹ 20,000 of the book debts proved bad.(c) Land and Building (Book value ₹ 12,50,000) sold for ₹ 15,00,000 through a broker who charged 2% commission.(d) Machinery (Book value ₹ 6,00,000) was handed over to a creditor at a discount of 10%.(e) Investment (Book value ₹ 60,000) realised at 125%.(f) Goodwill of ₹ 75,000 and prepaid fire insurance of ₹ 10,000.(g) There was an old furniture in the firm which had been written off completely in the books. This was sold for ₹ 10,000.(h) 'Z' an old customer whose account for ₹ 20,000 was written off as bad in the previous year, paid 60%.(i) 'P' undertook to pay Mrs. P's loan of ₹ 50,000.(j) Trade creditors ₹ 1,60,000. Half of the trade creditors accepted Plant and Machinery at an agreed valuation of ₹ 54,000 and cash in full settlement of their claims after allowing a discount of ₹ 16,000. Remaining trade creditors were paid 90% in final settlement.
Answer» Pass the Journal entries for the following transactions on the dissolution of the firm of P and Q after various assets (other than cash) and outside liabilities have been transferred to Realisation Account: (a) Stock ₹ 2,00,000. 'P' took over 50% of stock at a discount of 10%. Remaining stock was sold at a profit of 25% on cost. (b) Debtors ₹ 2,25,000. Provision for Doubtful Debts ₹ 25,000. ₹ 20,000 of the book debts proved bad. (c) Land and Building (Book value ₹ 12,50,000) sold for ₹ 15,00,000 through a broker who charged 2% commission. (d) Machinery (Book value ₹ 6,00,000) was handed over to a creditor at a discount of 10%. (e) Investment (Book value ₹ 60,000) realised at 125%. (f) Goodwill of ₹ 75,000 and prepaid fire insurance of ₹ 10,000. (g) There was an old furniture in the firm which had been written off completely in the books. This was sold for ₹ 10,000. (h) 'Z' an old customer whose account for ₹ 20,000 was written off as bad in the previous year, paid 60%. (i) 'P' undertook to pay Mrs. P's loan of ₹ 50,000. (j) Trade creditors ₹ 1,60,000. Half of the trade creditors accepted Plant and Machinery at an agreed valuation of ₹ 54,000 and cash in full settlement of their claims after allowing a discount of ₹ 16,000. Remaining trade creditors were paid 90% in final settlement.

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