Give Journal Entries for the Following Transactions-Accountancy Solution,Explain
Q.5. Give journal entries for the following transactions:
1. To record the Realisation of various assets and liabilities,
2. A Firm has a Stock of Rs 1,60,000. Aziz, a partner took over 50% of the Stock at a discount of 20%,
3. Remaining Stock was sold at a profit of 30% on cost,
4. Land and Buildging (book value Rs 1,60,000) sold for Rs 3,00,000 through a broker who charged 2%, commission on the deal,
5. Plant and Machinery (book value Rs 60,000) was handed over to a Creditor at an agreed valuation of 10% less than the book value,
6. Investment whose face value was Rs 4,000 was realised at 50%.
| S.No | Particulars | L.F. | Amount (Rs.) | Amount (Rs.) | |
| 1.1 | For Transfer of Assets : | ||||
| Realisation A/c | Dr. | – | |||
| To Assets A/c (Individually) | – | ||||
| (Assets transferred to Realisation Account) | |||||
| 1.2 | For Transfer of Liabilities : | ||||
| Liabilities A/c (Individually) | Dr. | – | |||
| To Realisation A/c | – | ||||
| (Liabilities transferred to Realisation Account) | |||||
| 1.3 | For sale of Asset | ||||
| Cash/Bank A/c | Dr. | – | |||
| To Realisation A/c | – | ||||
| (Assets sold) | |||||
| 1.4 | For amiability paid | ||||
| Realisation A/c | Dr. | – | |||
| To Cash/Bank A/c | – | ||||
| (Liabilities paid) | |||||
| 2) | Aziz’s Capital A/c | Dr. | 64,000 | ||
| To Realisation A/c | 64,000 | ||||
| (Aziz, a partner took over 50% of stock at 20% discount, the value of the total stock was Rs 1,60,000) | |||||
| 3) | Bank A/c | Dr. | 1,04,000 | ||
| To Realisation A/c | 1,04,000 | ||||
| (Stock worth Rs 80,000 sold at a profit of 30% on cost) | |||||
| 4) | Bank A/c | Dr. | 2,94,000 | ||
| To Realisation A/c | 2,94,000 | ||||
| (Land and Building sold for Rs 3,00,000 and 2% commission paid to the broker) | |||||
| 5) | No entry | – | – | ||
| (Plant and Machinery Rs 60,000 handed over to the creditors at a discount of 10%) | |||||
| 6) | Bank A/c | Dr. | 2,000 | ||
| To Realisation A/c | 2,000 | ||||
| (Investments worth Rs 4,000 were realised at 50%) | |||||
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