5 Views

Question : At the time of dissolution of the firm, outsiders liabilities are Rs 3,50,000. Firm's capital is Rs 6,00,000. Cash balance is rs 50,000. Other assets realized Rs 7,50,000. Profit / loss in the realization account will be .

Option 1: 1,50,000 ( Gain )

Option 2: Rs 2,00,000 (gain )

Option 3: Rs 2,00,000 (loss)

Option 4: Rs 1,50,000 (loss )


Team Careers360 3rd Jan, 2024
Answer (1)
Team Careers360 8th Jan, 2024

Correct Answer: Rs 1,50,000 (loss )


Solution : Answer = Rs 1,50,000 (loss)

Total assets = Firm's capital + outsiders' liabilities

= 6,00,000 + 3,50,000 = 9,50,000

Realisation A/c
To Sundry Assets(Except cash) 9,00000 Sundry liab. outsider' liab 3,50,000
To bank(outsiders liab) 3,50,000 Bank (Assets realised) 7,50,000
Loss 1,50,000
12,50,000 12,50,000

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