Accountancy

There was a contingent liability for B/R received from Ashok for Rs. 20,000 and discounted with the bank. Ashok became insolvent and 75 paise in a rupee were received from his estate. How much amount will be debited/credited to Realisation Account?

SOLUTION Debit Rs. 20,000 and Credit Rs. 15,000.

Continue ReadingThere was a contingent liability for B/R received from Ashok for Rs. 20,000 and discounted with the bank. Ashok became insolvent and 75 paise in a rupee were received from his estate. How much amount will be debited/credited to Realisation Account?

In the Balance Sheet Total Debtors appear at Rs. 50,000 and Provision for Doubtful Debts appear at Rs. 1,500. How much amount will be realised from Debtors, if bad debts amount to Rs. 10,000 and remaining debtors are realised at a discount of 5%.

SOLUTION Rs. 38,000

Continue ReadingIn the Balance Sheet Total Debtors appear at Rs. 50,000 and Provision for Doubtful Debts appear at Rs. 1,500. How much amount will be realised from Debtors, if bad debts amount to Rs. 10,000 and remaining debtors are realised at a discount of 5%.

If total assets are Rs. 2,00,000; total liabilities are Rs. 40,000; amount realised on sale of assets is Rs.  1,75,000 and realisation expenses are Rs. 3,000, what will be the profit or loss on realisation?

SOLUTION Loss Rs. 28,000

Continue ReadingIf total assets are Rs. 2,00,000; total liabilities are Rs. 40,000; amount realised on sale of assets is Rs.  1,75,000 and realisation expenses are Rs. 3,000, what will be the profit or loss on realisation?

On the basis of following data, how much final payment to a partner on firm’s dissolution will be made? Debit balance of Capital Account Rs. 14,000; Share of his profit on realisation Rs. 43,000; Firm’s asset taken over by him for Rs. 17,000.

SOLUTION Rs. 12,000

Continue ReadingOn the basis of following data, how much final payment to a partner on firm’s dissolution will be made? Debit balance of Capital Account Rs. 14,000; Share of his profit on realisation Rs. 43,000; Firm’s asset taken over by him for Rs. 17,000.