Total creditor amount to Rs. 5,00,000. Investments valued Rs. 2,00,000 were not shown in the hooks. One of the creditors took over these investments in full satisfaction of his debt of Rs. 2,20,000. Remaining creditors were paid at 5% discount. Pass entry for payment.

Total creditor amount to Rs. 5,00,000. Investments valued Rs. 2,00,000 were not shown in the hooks. One of the creditors took over these investments in full satisfaction of his debt of Rs. 2,20,000. Remaining creditors were paid at 5% discount. Pass entry for payment.

Post category:Accountancy
Reading time:1 mins read

SOLUTION

Realisation A/c Dr. 2,66,000
To Cash/Bank A/c 2,66,000

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