Book Value of assets (other than cash and bank ) transferred to Realisation Account is ₹ 1,00,000 . 50 % of the assets are taken over by a partner Atul , at a discount of 20% , 40% of the remaining assets are sold at a profit of 30% on cost , 5% of the balance being obsolete , realised nothing and remaining assets are handed over to a Creditor , in full settlement of his claim.
You are required to record the Journal entries for realisation of assets .

Explanation

1. Dr. Realisation A/c and Cr. Sundry Assets A/c by ₹ 1,00,000.
2. Dr. Atul' s Capital A/c and Cr. Realisation A/c by ₹ 40,000 (50/100 `xx` ₹ 1,00,000) - 20% of ₹ 50,000.
3. Dr. Bank A/c and Cr. Realisation A/c by ₹ 26,000 (40% of ₹ 50,000) + 30% of ₹ 20,000.
4. No Entry will be passed for 5% of remaining assets being obsolete and remaining assets handed over to a creditor in full settlement .