Question : On dissolution of a firm, firm's Balance Sheet total is Rs.77,000. On the assets side of the Balance Sheet items were shown preliminary expenses Rs.2,000; Profit & Loss Account (Debit) Balance Rs.4,000 and Cash Balance Rs.1,800. Loss on realisation was Rs.6,300. Total assets (including cash balance) realised will be
Option 1: 69,200
Option 2: 71,000
Option 3: 64,700
Option 4: 62,900
Correct Answer: 64,700
Solution : Answer = 64,700
Memorandum balance sheet | |||
S.Assets(b/f) | 69,200 | ||
Cash | 1,800 | ||
Profit and loss | 4,000 | ||
Preliminary expenses | 2,000 | ||
77,000 | 77,000 |
Realisation a/c | |||
To Sundry assets | 69,200 | To Bank(assets realised)(b/f) | 62,900 |
Loss | 6,300 | ||
69,200 | 69,200 |
Assets realised | 62,900 |
(+) Cash balance | 1,800 |
Total | 64,700 |
Hence, the correct option is 3.