1.

What journal entrieswould be recorded for the following transactions on the dissolutionof a firm after various assets (other than cash) on the third partyliabilities have been transferred to Reliasation Account.1. Arti took over theStock worth Rs 80,000 at Rs 68,000.2. There was unrecordedBike of Rs 40,000 which was taken over By Mr. Karim.3. The firm paid Rs40,000 as compensation to employees.4. Sundry creditorsamounting to Rs 36,000 were settled at a discount of 15%.5. Loss on RealisationRs 42,000 was to be distributed between Arti and Karim in the ratioof 3:4.

Answer»

What journal entries
would be recorded for the following transactions on the dissolution
of a firm after various assets (other than cash) on the third party
liabilities have been transferred to Reliasation Account.


1. Arti took over the
Stock worth Rs 80,000 at Rs 68,000.


2. There was unrecorded
Bike of Rs 40,000 which was taken over By Mr. Karim.


3. The firm paid Rs
40,000 as compensation to employees.


4. Sundry creditors
amounting to Rs 36,000 were settled at a discount of 15%.


5. Loss on Realisation
Rs 42,000 was to be distributed between Arti and Karim in the ratio
of 3:4.



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