Practicing Success
Meena and Tina are partners in a firm and share profit as 3:2. They decided to dissolve their firm on March 31, 2017, when their Balance Sheet was as follows: Balance Sheet Meena and Tina as of March 31,2017
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When a creditor accepts an asset whose value is more than the amount due to him, he will..............the excess amount which will be credited to.............Account. |
Pay, Bank Not pay, Creditors Pay, Realisation Not pay, Realisation |
Pay, Realisation |
* If the creditor accepts an asset as full and final settlement, no journal entry is required. However, * If the creditor accepts an asset as a partial payment, the entry is recorded for the cash payment portion only. |