Journal Entries to Record the Following Unrecorded Assets and Liabilities In The Books Of Paras and Priya ? Solution,Explain

Q.8. Record necessary journal entries to record the following unrecorded assets and liabilities in the books of Paras and Priya:

1. There was an old furniture in the firm which had been written-off completely in the books. This was sold for Rs 3,000,
2. Ashish, an old customer whose Account for Rs 1,000 was written-off as bad in the previous year, paid 60%, of the amount,
3. Paras agreed to take over the firm’s goodwill (not recorded in the books of the firm), at a valuation of Rs 30,000,
4. There was an old typewriter which had been written-off completely from the books. It was estimated to realize Rs 400. It was taken away by Priya at an estimated price less 25%,
5. There were 100 shares of Rs 10 each in Star Limited acquired at a cost of Rs 2,000 which had been written-off completely from the books. These shares are valued @ Rs 6 each and divided among the partners in their profit sharing ratio.

SOLUTION

Journal

Date	Particulars		L.F.	Amount (Dr.)	Amount (Cr.)
1.	Bank A/c	Dr.		3,000
	To Realisation A/c				3,000
	(Unrecorded furniture Sold)
2.	Bank A/c	Dr.		600
	To Realisation A/c				600
	(Rs 1,000 was written-off as bad in the previous year, paid 60%, of the amount)
3.	Paras’s Capital A/c	Dr.		30,000
	To Realisation A/c				30,000
	(Paras take over the firm’s goodwill of Rs 30,000)
4.	Priya’s Capital A/c	Dr.		300
	To Realisation A/c				300
	(Unrecorded typewriter was taken over by Priya @ 25% discount)
5.	Paras’s Capital A/c	Dr.		300
	Priya’s Capital A/c	Dr.		300
	To Realisation A/c				600
	(Firm's 100 shares are taken by partners @Rs 6 per each)

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