question_answer

On firm's dissolution, what entry will be passed when a partner A took over 50% of the stock at a discount of 20% (Book value of stock was Rs. 5,00,000).

Answer:

                                                                        JOURNAL

Date	Particulars		LF	Amt (Dr)	Amt (Cr)
	A's Capital A/c	Dr		2,00,000
	To Realisation A/c				2,00,000
	(Being 50% of Stock take over by A at 20% discount)

Working Note Calculation of Value of 50% Stock taken over by A

\[5,00,000\times \frac{50}{100}\]	= 2,50,000
\[(-)\,2,50,000\times \frac{20}{100}\]	= (50,000)
	= Rs. 2,00,000