Question : Book Value of assets (other than cash and bank) transferred to Realisation Account is Rs. 1,00,000. 50% of the assets are taken over by a partner Atul, at a discount of 20%; 40% of the remaining assets are sold at a profit of 30% on cost; 5% of the balance being obsolete, realised nothing and remaining assets are handed over to a Creditor, in full settlement of his claim. The entry will be
Option 1: Debited bank account Rs 52,000 and debited partner's capital account with Rs 40,000 credited realization account Rs 92,000
Option 2: Debited bank account Rs 40,000 and partners capital account Rs 52,000 credited realization account Rs 92,000
Option 3: Debited bank account Rs 50,000 and partner's capital account with Rs 50,000 credited realization account Rs 1,00,000
Option 4: None of the above
Correct Answer: Debited bank account Rs 52,000 and debited partner's capital account with Rs 40,000 credited realization account Rs 92,000
Solution : Answer = Debited bank account Rs 52,000 and debited partner's capital account with Rs 40,000 credited realization account Rs 92000
Partners capital A/C Dr. 40,000 (50,000-10,000)
Bank AIC Dr. 52000 (40,000+12000)
To Realisation A/C 92000
Hence, the correct option is 1.
