Record journal entry for the following on dissolution of a firm.
Firm has a stock of ₹2,40,000. Arun, a partner took over 50% of the stock at a discount of 15%.
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → Arun's Capital A/c Dr. ₹1,02,000 To Realisation A/c ₹1,02,000
When a partner takes over an asset, his capital account is debited and Realisation Account is credited with the agreed value.
Stock taken = 50% of ₹2,40,000 = ₹1,20,000
Discount = 15% of ₹1,20,000 = ₹18,000
Value charged to Arun = ₹1,20,000 − ₹18,000 = ₹1,02,000
NCERT (2026-27 edition):
NCERT (2026-27 edition):
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