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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 value of sundry assets are

Option 1: 1,28,000

Option 2: 11,800

Option 3: 1,18,000

Option 4: None of the above


Team Careers360 4th Jan, 2024
Answer (1)
Team Careers360 5th Jan, 2024

Correct Answer: 1,18,000


Solution : Answer = 1,18,000

Memorandum Balance Sheet
Liabilities Amount Assets Amount
Capitals S.Assets (b/f) 1,18,000
A 62,000
B 36,000
Creditor 20,000
1,18,000 1,18,000

Partner's Capital A/c
A B A B
To Drawings 8,000 8,000 By Bal b/d 60,000 40,000
To Bal c/d 72,000 52,000 By Profit & loss A/c (Profit) 30,000 20,000
90,000 60,000 90,000 60,000
To Drawings 8,000 8,000 By Bal b/d 72,000 52,000
To Profit & loss (loss) 12,000 8,000
82,000 52,000 82,000 52,000

Hence, the correct option is 3.

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