Question : C's Capital Account has a credit balance of Rs.2,00,000; C's Loan Account is showing a debit balance of Rs.40,000. Bank Balance is Rs.3,00,000. Show the treatment of C's Loan Account.
Option 1: Debited C's capital Rs 40,000 and credited C's Loan account Rs 40,000
Option 2: Debited C's capital Rs 1,60,000 and credited C's loan Rs 1,60,000
Option 3: Credited C's capital Rs 40,000 and debited C's loan Rs 40,000
Option 4: None of the above
Correct Answer: Debited C's capital Rs 40,000 and credited C's Loan account Rs 40,000
Solution : Answer = Debited C's capital Rs 40,000 and credited C's Loan account Rs 40,000 C's Loan [Dr balance] mean the firm had given the loan to Partner. At the time of dissolution of the Partnership firm, the Partner's Loan will transferred to Partner's Capital account. Partner's Capital A/C Dr. To Partner's Loan. A/c. Hence, the correct option is 1.
Question : Choose the correct Journal entry with respect to loan by Amit (Partner) for the following cases at the time of the firm's dissolution: The loan by Amit (Partner) is Rs. 50,000 and the Balance in his Capital Account (credit) is Rs. 25,000.
Option 1: debited partner's loan account and credited partner's capital account with Rs 25,000
Option 2: debited realization account and credited Banka account Rs 25,000
Option 3: Debited partner's loan account and credited bank account with Rs 25,000
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
Question : Credit side of revaluation account Rs 60,000 and debit side of revaluation account Rs 40,000 . Entry for the balance will be .
Option 1: A and B debited with Rs 12,000 and Rs 8,000 and credited revaluation account Rs 20,000
Option 2: Revaluation account Dr Rs 20,000 and crediting A's account Rs 12,000 and B's account Rs 8,000
Option 3: Revaluation account Dr 20,000 and crediting A, B and C with Rs 6,667 each
Question : There are two partners A and B in a firm and their capitals are Rs. 50,000 and Rs. 40,000. The creditors are Rs. 30,000. The assets of the firm realise Rs. 1,00,000. How much will A and B receive or be paid?
Option 1: A's capital account debited Rs 40,000, and credited bank account Rs 40,000
Option 2: B's capital account debited Rs 30,000 and credited bank account Rs 30,000
Option 3: Both 1 and 2
Question : Realization expenses of Rs. 5,000 were to be borne by Pavit, a partner. However, it was paid by Hitesh, another partner. It was to be recorded in the books. The entry will be
Option 1: Debited realisation account Rs 5,000, credited Pavit's capital account Rs 5,000
Option 2: Debited realisation account Rs 5,000, credited Bank account Rs 5,000
Option 3: Debited realisation account Rs 5,000 and credited Hitesh's capital account Rs 5,000
Option 4: Debited Pavit's capital account and credited Hitesh's capital account Rs 5,000
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