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.
Option 1: Gain Rs 1,90,000
Option 2: Loss Rs 1,80,000
Option 3: Gain Rs 9,60,000
Option 4: Loss Rs 2,00,000
Answer (1)
25th Jan, 2024
Correct Answer: Gain Rs 1,90,000
Solution : Answer = Gain =190,000
| Realisation a/c | |||
| To S.Assets | 10,00,000 | S.Liabilities | 2,00,000 |
| To Bank | 2,10,000 | Creditor | |
| Expenses-20,000 | Bank(assets realised) | 12,00,000 | |
| Creditor-1,90,000 | |||
| Profit | 1,90,000 | ||
| 14,00,000 | 14,00,000 | ||
Hence, the correct option is 1.
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