Question : Trade creditors Rs. 1,60,000. Half of the trade creditors accepted Plant and Machinery Settled an agreed valuation of Rs. 54,000 and cash in full settlement of their claims after Allowing a discount of Rs. 16,000. The remaining trade creditors were paid 90% in the final settlement. Bank account will be credited/debited by .....
Option 1: Credited by Rs 10,000
Option 2: Credited by Rs 72,000
Option 3: Credited by Rs 60,000
Option 4: Credited By Rs 82,000
Correct Answer: Credited By Rs 82,000
Solution : Answer = Credited By Rs 82,000 Realisation AIC Dr. 82000 To Bank A/C 82000
Hence, the correct option is 4.
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 : In the Settlement Of Varun's ( partner) loan Of Rs 50,00 to the firm, a computer net appearing in the books is taken over by him at an agreed value of Rs 30,000. The realization account will be
Option 1: Debited by Rs 30,000
Option 2: Credited by Rs 30,000
Option 3: Debited by Rs 50,000
Option 4: Credited by Rs 50,000
Question :
A liability for a claim, included in creditors for Rs.20,000 is settled at Rs.16,000. The revaluation account will be -----
Option 1: Debited by Rs 4,000
Option 2: Credited by Rs 4,000
Option 3: No effect on revaluation account
Option 4: None of the above
Question : A, B and C started business on 1st April 2019 with capitals of Rs. 1,00,000; Rs. 80,000 and Rs. 60,000 respectively sharing profits (losses) in the ratio of 4:3:3. For the year ended 31st March 2020, the firm incurred a loss of Rs. 50,000. Each of the partners withdrew Rs. 10,000 during the year.
On 31st March 2020, the firm was dissolved, the creditors of the firm stood at Rs. 24,000 on that date and Cash in Hand was Rs. 4,000. The assets realised Rs. 3,00,000 and Creditors were paid Rs. 23,500 in full settlement of their claims. Question: In case of profit and loss on realization. Realization account will be debited/credited by
Option 1: Partner's capital account debited and credited realization account by Rs 1,20,500
Option 2: Realization account debited and partner's capital account credited by Rs 1,20,500
Option 3: Profit and loss account debited and credited partner's capital account
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