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 )
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
Hence, the correct option is 4.
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
Question : At the time of the dissolution of the firm, the firm's total assets were Rs 10,00,000. Creditors were Rs 2,00,000. Realization Expenses amounted to rs 20,000. Assets realized 20% more than the book value and creditors were paid 5% less. Gain/loss on realization will be.
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