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Question : Murari and Vohra of Chandigarh were partners in a firm with capitals of Rs. 1,20,000 and Rs. 1,60,000 respectively. On 1.4.2018 they admitted their manager, Robin Gurung of Meghalaya, as a partner for one-fourth share in profits on his payment of Rs.2,00,000 as his capital and Rs. 90,000 for his one-fourth share of goodwill.

On that date the creditors of Murari and Vohra were Rs. 60,000 and Bank overdraft was Rs. 15,000. Their assets apart from cash included Stock Rs. 10,000; Debtors Rs.40,000;
Plant and Machinery Rs.80,000; Land and Building Rs.2,00,000. It was agreed that stock should be depreciated by Rs.2,000; Plant and Machinery by 20%, Rs. 5,000 should be written off as bad debts and Land and Building should be appreciated by 25%.
Question:
Value of cash will be

Option 1: Rs 25,000

Option 2: Rs 35,000

Option 3: Rs 10,000

Option 4: None of the above


Team Careers360 4th Jan, 2024
Answer (1)
Team Careers360 9th Jan, 2024

Correct Answer: Rs 25,000


Solution : Answer = Rs 25,000

Memorandum Balance Sheet

Creditor 60,000 Stock 10,000
Bank Overdraft 15,000 Debtor 40,000
Capital Murari 1,20,000 Plant 80,000
Capital Vohra 1,60,000 Building 2,00,000
Cash (b/f) 25,000
3,55,000 3,55,000

Hence, the correct option is 1.

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