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

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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

DateParticularsL.F.
Amount
(Dr.)
Amount
(Cr.)
1.Bank A/cDr.3,000
    To Realisation A/c3,000
(Unrecorded furniture Sold)
2.Bank A/cDr.600
    To Realisation A/c600
(Rs 1,000 was written-off as bad in the previous year, paid 60%, of the amount)
3.Paras’s Capital A/cDr.30,000
    To Realisation A/c30,000
(Paras take over the firm’s goodwill of Rs 30,000)
4.Priya’s Capital A/cDr.300
    To Realisation A/c300
(Unrecorded typewriter was taken over by Priya @ 25% discount)
5.Paras’s Capital A/cDr.300
Priya’s Capital A/cDr.300
    To Realisation A/c600
(Firm's 100 shares are taken by partners @Rs 6 per each)

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