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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


Team Careers360 6th Jan, 2024
Answer (1)
Team Careers360 7th Jan, 2024

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.

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