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✦ FREE LEARNING — CLASS 11 & 12 — CBSE · PSEB — ACCOUNTS · ECONOMICS · BST ✦
Pass the necessary Journal entries in the following cases: (a) Creditors worth ₹85,000 accepted ₹40,000 as cash and Investments worth ₹43,000 in full settlement of their claim. (b) Creditors were ₹16,000; they accepted Machinery valued at ₹18,000 in settlement of their claim. (c) Creditors were ₹90,000; they accepted Building valued at ₹1,20,000 and paid cash to the firm of ₹30,000.
JOURNAL
| Date | Particulars | L.F. | Dr. (₹) | Cr. (₹) |
|---|---|---|---|---|
| (a) | ||||
| Realisation A/c Dr. | 40,000 | |||
| To Cash A/c | 40,000 | |||
| (Creditors of ₹85,000 accepted ₹40,000 cash and Investments worth ₹43,000 in full settlement; only the cash portion needs an entry) | ||||
| (b) No entry — Creditors of ₹16,000 accepted Machinery worth ₹18,000 in full settlement; both the asset and the liability are already in the Realisation Account | ||||
| (c) | ||||
| Cash A/c Dr. | 30,000 | |||
| To Realisation A/c | 30,000 | |||
| (Creditors of ₹90,000 accepted Building worth ₹1,20,000 and paid back the excess of ₹30,000 in cash) | ||||
Accounting & Commerce Educator
Sarbjit Singh holds a B.Com and M.Com degree and has over 12 years of teaching experience in double entry bookkeeping, financial accounting, and business studies.
This guide covers "T.S. Grewal Class 12 Chapter 7 Q.8 - Dissolution of a Partnership Firm", focusing on key definitions, step-by-step concepts, applications, and revision guidelines relevant to Chapter 7 - Dissolution of a Partnership Firm.
It is primarily curated for Class 11 and Class 12 high school commerce, accounting, and economics students, as well as aspirants preparing for board exams or CA Foundation.
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