CBSE 2023 · Region 4 · Set 1 · Q24

Pass the necessary journal entries for the following transactions on dissolution of the firm of Varun and Vivek after various assets (other than cash) and outside liabilities were transferred to Realisation Account : (i) Varun paid creditors ₹ $\displaystyle 18,500$ in full settlement of their claim of ₹ $\displaystyle 20$,000. (ii) Vivek agreed to pay his wife's loan of ₹ $\displaystyle 70$,000. (iii) The firm had unrecorded investments of ₹ $\displaystyle 2,00,000$, which were sold at a loss of $\displaystyle 20$%. (iv) The firm had stock of ₹ $\displaystyle 1,00$,000. Varun took over the stock at a discount of $\displaystyle 10$%. (v) Reema, a debtor whose account for ₹ $\displaystyle 2,000$ was written off as a bad debt in the previous year, paid $\displaystyle 70$% of the amount. (vi) Expenses of realisation ₹ $\displaystyle 4,900$ were paid by partner, Vivek.