Plant and Machinery (book value Rs. 60,000) was handed over to a Creditor at an agreed valuation of 10% less than the book value. What journal entry will be passed in the books of the firm at the time of dissolution of the firm?
1
Realisation A/c _______ Dr. 54,000
To Machinery A/c 54,000
To Machinery A/c 54,000
2
No Entry will be passed
3
Creditors A/c ______ Dr. 54,000
To Machinery A/c 54,000
To Machinery A/c 54,000
4
Realisation A/c _______ Dr. 54,000
To Cash A/c 54,000
To Cash A/c 54,000