CBSE 2024 · Region 5 · Set 3 · Q25

Pass the necessary journal entries for the following transactions on the dissolution of the firm of Rad ha and Sud ha after various assets (other than cash) and third party liabilities have been transferred to Realisation Account : (i) British, an old customer, whose account for ₹ $\displaystyle 11,000$ was written off as bad debt in the previous year, paid $\displaystyle 70$% of the amount. (ii) Sundry creditors amounting to ₹ $\displaystyle 40,000$ were settled at a discount of $\displaystyle 20$% . (iii) Rad ha took over investments worth ₹ $\displaystyle 23,000$ at ₹ $\displaystyle 20$,000. (iv) Profit and Loss Account showed a debit balance of ₹ $\displaystyle 18$,000. (V) Sudha's loan amounting to ₹ $\displaystyle 15,000$ was paid. (vi) Machinery of the book value of ₹ $\displaystyle 1,00,000$ was given to a creditor of ₹ $\displaystyle 85,000$ in full settlement.