Pass necessary Journal entries for the following transactions on the dissolution of a firm after various assets (other than cash) and outside liabilities have been transferred to Realisation Account:

  • Realisation expenses of the firm amounting to ₹ 2,600 were paid by partner, Aman.
  • A creditor of ₹ 4,500 took over stock valued at ₹ 5,200 in full settlement.
  • An unrecorded asset realised ₹ 3,500.
  • Remaining creditors amounting to ₹ 20,000 were paid at a discount of 5%.
  • Remaining stock of ₹ 30,000 was taken over by Bimal, a partner, at a discount of 20%.
  • Investment whose face value was ₹ 10,000 was realised at 40%.

Solution :