Question : M & N were partners. They decided to dissolve their firm on 31st march 2022. The balance sheet of the firm is given below. M undertook to pay Mrs. M Loan and took over 40% of the stock and 70% of machinery at a discount of 15%.The Value at which asset is taken over by M will be :
Balance sheet as at 31st march 2022
|
Liabilities |
Amount |
Assets |
Amount |
|
Capital M |
40000.00 |
Furniture |
50000.00 |
|
N |
100000.00 |
Machinery |
20000.00 |
|
Mrs. M Loan |
15000.00 |
Stock |
50000.00 |
|
Cash in Hand |
35000.00 |
||
|
155000.00 |
155000.00 |
Option 1: Rs.17,000
Option 2: Rs.5,100
Option 3: Rs.28,900
Option 4: None of the Above
Correct Answer: Rs.28,900
Solution : Value of Stock Taken over M = 50000*40% = Rs.20000
Less : Amount of Discount = Rs.20000*15% = Rs.3000
A = 17000
Value of Machine Taken over by M = 20000*70% = 14000
Less : Amount of Discount = 14000*15% = 2100
B = 11900
Total Value of Asset Taken over by M = (A+B)
= 17000 + 11900
= 28900
Hence the correct answer is option 3.
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