Raman and Naman were in partnership sharing profit and losses as 3 : 2 . Their partnership firm was dissolved on 31 March 2022. On the date of dissolu - Accountancy MCQ CUET Accountancy 2022 20 Aug Shift 2 2026 | ExamTest.live

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Raman and Naman were in partnership sharing profit and losses as 3 : 2 . Their partnership firm was dissolved on 31 March 2022. On the date of dissolution, Naman's loan was Rs. 20, 000 . Naman agreed to take stock (already transferred to Realisation A/c) of Rs. 15, 000 at Rs. 18, 000 and balance in cash for the settlement of loan. Journal Entry for above transaction is:

Solution & Step-by-step Explanation

Naman's Loan Account should be closed by debiting it with Rs. 20, 000 . The stock he takes over is valued at Rs. 18, 000, which is credited to the Realisation Account. The remaining balance (20, 000 - 18, 000) of Rs. 2, 000 is paid in cash and thus Cash A/c is credited.

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Raman and Naman were in partnership sharing profit and losses as 3 : 2 . Their partnership firm was dissolved on 31 March 2022. On the date of dissolution, Naman's loan was Rs. 20, 000 . Naman agreed to take stock (already transferred to Realisation A/c) of Rs. 15, 000 at Rs. 18, 000 and balance in cash for the settlement of loan. Journal Entry for above transaction is:

Naman's Loan A/c Dr 20, 000 To Realisation A/c 18, 000 To cash A/c 2, 000

Naman's Loan A/c Dr. 20, 000 To Realisation A/c 15, 000 To cash A/c 5, 000

Naman's Loan A/c Dr. 20, 000 To Realisation A/c 20, 000

Naman's Loan A/c Dr. 20, 000 To Realisation A/c 12, 000 To cash A/c 8, 000

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