Question : An old computer completely written off was sold for Rs. 2,000 as scrap. Choose the correct Journal entry
Option 1: Computer account debited by Rs 2,000 and credited revaluation account Rs 2,000
Option 2: Revaluation account debited by Rs 2,000 and credited computer account Rs 2,000
Option 3: Debited bank account by Rs 2,000 and credited revaluation account by Rs 2,000
Option 4: debited revaluation account Rs 2,000 and credited bank account by Rs 2,000
Correct Answer: Debited bank account by Rs 2,000 and credited revaluation account by Rs 2,000
Solution : Answer (C) Debited bank account by Rs 2000 and credited revaluation account by Rs 2000 Bank A/C..........Dr 2000 To Revaluation AIC 2000 Hence, the correct option is 3.
Question : Harsh's loan of Rs. 6,000 was settled by paying Rs. 5,500. Choose the correct journal entry
Option 1: Harsh's loan account debited Rs 6000 and credited bank account Rs 6000
Option 2: Harsh's loan account debited Rs 5500 and credited bank account Rs 5500
Option 3: Harsh's loan account debited Rs 6000 , credited bank account Rs 5500 and credited realization account Rs 500
Option 4: None of the above
Question : Mohan and Kanwar are partners in a firm. Their firm was dissolved on 1.1.2013. Mohan was assigned the work of dissolution. For this work Mohan was to be paid Rs.500. Mohan paid dissolution expenses of Rs.400 from his own pocket. Choose the correct Journal entry
Option 1: Debited realization account by Rs 400 and credited bank account Rs 400
Option 2: Debited realization account by Rs 900 and credited mohan's capital account Rs 900
Option 3: Debited realization account Rs 500 credited Moahn's capital acccout Rs 400 and bank account Rs 100
Question : Half of the Trade Creditors valued Rs 40,000 accepted Plant and Machinery at 10% less than the book value and Cash of Rs. 5,000 in full settlement of their claims. The remaining Trade Creditors were paid at a discount of 10%. The entry will be
Option 1: Realization account debited and Bank account credited by Rs 5,000
Option 2: Realization account debited and Bank account credited by Rs 36,000
Option 3: Realization account debited and Bank account credited by Rs 41,000
Option 4: Realization account debited and Bank account credited by Rs 80,000
Question : A debtor of Rs 31,000 agreed to pay the dissolution expenses which were Rs 30,000 in full settlement of his debt. Choose the correct option.
Option 1: debited cash account Rs 31,000 and credited realization account Rs 31,000
Option 2: debited realization account rs 30,000 and credited bank account rs 30,000
Option 3: No entry required
Option 4: debited cash account Rs 1000 and credited realization account Rs 1000
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