On dissolution, the amount of Sundry Assets transferred to Realisation Account is Rs. 1,00,000. 40% of the assets realised 120% of their book value; 25% of the remaining were sold at a discount of 20% and remaining were taken over by Vikas (a partner) at book value. Pass entries.

SOLUTION

Bank A/c Dr. 60,000
To Realisation A/c 60,000

(Assets of book value of Rs. 40,000 sold at Rs. 48,000 and assets having book value of Rs. 15,000 sold for Rs. 12,000)

Vikas’s Capital A/c Dr. 45,000
To Realisation A/c 45,000
(Assets taken over by Vikas at par)