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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


Team Careers360 7th Jan, 2024
Answer (1)
Team Careers360 18th 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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