Question : A and B were partners from 1st April 2018 with capitals of Rs. 60,000 and Rs. 40,000 respectively. They shared profits in the ratio of 3: 2. They carried on business for two years.
In the first year ended 31st March 2019, they earned a profit of Rs. 50,000 but in the second year ended 31st March 2020, a loss of Rs. 20,000 was incurred. As the business was no longer profitable, they dissolved the firm on 31st March 2020. Creditors on that date were Rs 20,000. The partners withdrew for personal use of Rs. 8,000 per partner per year. The assets realised Rs. 1,00,000. The expenses of realisation were Rs. 3,000.
Question:
The profit/loss on realization is
Option 1: Profit Rs 21,000
Option 2: Loss Rs 21,000
Option 3: Loss Rs 2,100
Option 4: Profit Rs 2,100
Correct Answer: Loss Rs 21,000
Solution : Answer = Loss Rs 21,000
| Realisation a/c | |||
| To sundry assets | 1,18,000 | S.Liabilities | |
| To Cash | By Creditor | 20,000 | |
| Creditors | 20,000 | By Cash (assets realised) | 1,00,000 |
| Expenses | 3,000 | By Loss | 21,000 |
| 1,41,000 | 1,41,000 | ||
Hence, the correct option is 2.
Related Questions
Trending Articles/News
