12 Views

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.

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
SLAT 2025 - The Symbiosis Law...
Apply
Conducted by Symbiosis International (Deemed University) | Ranked #5 in Law by NIRF | Ranked #2 among best Pvt Universities by QS World Rankings
Jindal Global Law School Admi...
Apply
Ranked #1 Law School in India & South Asia by QS- World University Rankings | Merit cum means scholarships
Symbiosis Law School Pune Adm...
Apply
NAAC A++ Accredited | Ranked #5 by NIRF
Nirma University Law Admissio...
Apply
Grade 'A+' accredited by NAAC
ISBR Business School PGDM Adm...
Apply
180+ Companies | Highest CTC 15 LPA | Average CTC 7.5 LPA | Ranked as Platinum Institute by AICTE for 6 years in a row | Awarded Best Business Scho...
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