CBSE 2025 · Region 7 · Set 2 · Q17

Piyush and Mita were partners in a firm sharing profits and losses in the ratio of $\displaystyle 5$ : 2. On 31st March, $\displaystyle 2024$, the firm was dissolved. After transferring various assets (other than cash) and third-party liabilities to Realisation Account, the following transactions took place. (i) Investments whose book value was $\displaystyle 50,000$ were realised at $\displaystyle 70$%. (ii) Unrecorded liabilities of $\displaystyle 21,000$ were paid. (iii) Piyush took over stock worth $\displaystyle 78,000$ at $\displaystyle 65$,000. Pass necessary journal entries for the above transactions in the books of Piyush and Mita.