Read the following information and answer the following question.
X & Y are partners sharing profits and losses in the ratio 4:3. They decide to dissolve the firm. On the date of dissolution following information is available-
X's Capital = ₹1,25,030
Y's Capital = ₹2,070
Creditors = ₹23,150
Cash = ₹4,520.
Remaining assets realised at ₹1,24,910 and the dissolution expenses are ₹1,860. Both Partners are solvent.
Pass the journal entry for the realisation of assets.
Answer & explanation
Correct answer: option 1
The correct answer is option 1-
Cash A/c Dr. ₹1,24,910
To Realisation A/c ₹1,24,910
Remaining assets realised at ₹1,24,910. So Cash come to firm so cash account is debited and realisation account is credited with the amount of realisation.