During a dissolution of a partnership,
creditors of the partnership agreed to a settlement of $10,000. The creditors
balance in the balance sheet prior to settlement was $15,000. The journal
entries to record the discounts provided by the creditors are:

Question

Answer

Dr. Accounts Payable      $10,000

Cr. Bank                              $10,000

Answer

Dr. Accounts Payable      $5,000

Cr. Discounts                     $5,000

Answer

Dr. Accounts Payable      $15,000

Cr. Realization                  $15,000

Dr. Realization                  $5,000

Cr. Bank                              $5,000

Answer

Dr. Accounts Payable      $5,000

Cr. Realization                  $5,000

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During a dissolution of a partnership, creditors of the partnership agreed to a...

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