Pass the Journal entries for the following transactions on the dissolution of the firm of P and Q after various assets (other than cash ) and outside liabilities have been transferred to Realisation Account :
(a) Stock ₹ 2,00 ,000 . P took over 50% of stock at a discount of 10% . Remaining stock was sold at a profit of 25% on cost .
(b) Debtors ₹ 2,25,000 . Provisions for Doubtful Debts ₹ 25,000 . ₹ 20,000 of the book debts proved bad .
(c) Land and Building (Book value ₹ 12,50,000) sold for ₹ 15,00,000 through a broker who charged 2% commission.
(d) Machinery (Book value ₹ 6,00,000) was handed over to a creditor at a discount of 10% .
(e) Investment (Book value ₹ 60,000 ) realised at 125 % .
(f) Goodwill of ₹ 75,000 and prepaid fire insurance of ₹ 10 , 000 .
(g) There was an old furniture in the firm which had been written off completely in the books . This was sold for ₹ 10,000 .
(h) Z an old customer whose accounts for ₹ 20,000 was written off as bad in the previous year , paid 60% .
(i) P undertook to pay Mrs. P's loan of ₹ 50,000 .
(j) Trade creditors ₹ 1, 60, 000 . Half of the trade creditors accepted Plant and Machinery at an agreed valuation of ₹ 54, 000 and cash in full settlement of their claims after allowing a discount of ₹ 16,000 . Remaining trade creditors were paid 90% in final settlement .

Explanation

(f) For Goodwill , no Journal entry assuming that goodwill has not realised anything . For prepaid fire insurance no Journal entry because it is not realised at all.
(j) (i) Dr. Realisation A/c and Cr. Bank A/c by ₹ 10,000 .
(ii) Dr. Realisation A/c and Cr. Bank A/c by ₹ 72,000.