6 Views

Question : At the time of dissolution of a firm, Creditors are Rs.40,000, Partners' capital is Rs.2,00,000; Cash Balance is Rs.20,000, and other assets are realized Rs.2,00,000. Profit/Loss in the realization account will be

Option 1: 60,000 (Loss)

Option 2: 40,000 (Loss)

Option 3: 20,000 (Profit)

Option 4: 20,000 (Loss)


Team Careers360 17th Jan, 2024
Answer (1)
Team Careers360 22nd Jan, 2024

Correct Answer: 20,000 (Loss)


Solution : Answer = 20,000 (Loss)

Memorandum balance sheet
To Creditor 40,000 Cash 20,000
Partner's capital 2,00,000 S.Assets(b/f) 2,20,000
2,40,000 2,40,000

Realisation a/c
To S.Assets 2,20,000 S.Liabilities(Creditor) 40,000
To Bank 40,000 Bank(assets realised) 2,00,000
Creditor Loss(b/f) 20,000
2,60,000 2,60,000

Hence, the correct option is 4.

Related Questions

UPES Integrated LLB Admission...
Apply
Ranked #28 amongst Institutions in India by NIRF | Ranked #1 in India for Academic Reputation by QS University Rankings | 16.6 LPA Highest CTC
Jindal Global Law School Admi...
Apply
Ranked #1 Law School in India & South Asia by QS- World University Rankings | Merit cum means scholarships | Application Deadline: 30th Nov'24
Chandigarh University Admissi...
Apply
Ranked #1 Among all Private Indian Universities In QS Asia Rankings 2025 | Scholarships worth 210 CR
Great Lakes PGPM & PGDM 2025
Apply
Admissions Open | Globally Recognized by AACSB (US) & AMBA (UK) | 17.3 LPA Avg. CTC for PGPM 2024 | Application Deadline: 1st Dec 2024
ICFAI Business School-IBSAT 2024
Apply
9 IBS Campuses | Scholarships Worth Rs 10 CR
Nirma University Law Admissio...
Apply
Grade 'A+' accredited by NAAC
View All Application Forms

Download the Careers360 App on your Android phone

Regular exam updates, QnA, Predictors, College Applications & E-books now on your Mobile

150M+ Students
30,000+ Colleges
500+ Exams
1500+ E-books