Question : In settlement of partner's loan of Rs 60,000 to the firm, A furniture not appearing In the books is taken over by her agreed value of Rs 70,000 . Journal entry would be
Option 1: Partner's loan A/c Dr Rs60,000 Partner 's capital a/c Dr Rs 10,000 To Bank A/c 70,000
Option 2: partner's Loan A/c Dr 70,000 To partner's capital account Rs 70,000
Option 3: Partners loan A/c Dr 70,000 to Realization account 60,000 to partner's capital account Rs 10,000
Option 4: No entry is required
Correct Answer: No entry is required
Solution : Answer = No entry is required. If any liabilities were Paid through Recorded or unrecorded Assets, then Realisation a/c will Be debited and credited by the same amount. No Journal Entry is Passed. Hence, the correct option is 4.
Question : Realisation expenses of Rs 10,000 were paid by the firm. Choose the correct journal entry.
Question : Choose the incorrect journal entry. When Present Adjusted Capital (after adjustments) is more than the Proportionate Capital:
Question : If retiring partner's Capital Account after adjustments shows 'Debit Balance', that much amount is receivable from the retiring partner. The entry is:
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