Question : On dissolution of a firm, its balance sheet revealed capital of Rs 5,00,000. General reserve Rs 2,00,000, creditors Rs 1,00,000 and cash balance Rs 20,000. Assets realized at 60%. What will be the loss on realization?
Option 1: 3,24,000
Option 2: 3,00,000
Option 3: 3,12,000
Option 4: None of the above.
Answer (1)
20th Jan, 2024
Correct Answer: 3,12,000
Solution : Answer = 3,12,000
| Memorandum balance sheet | |||
| Capitals | 5,00,000 | Cash | 20,000 |
| General reserve | 2,00,000 | S.Assets(b/f) | 7,80,000 |
| Creditor | 1,00,000 | ||
| 8,00,000 | 8,00,000 | ||
| Realisation a/c | |||
| To Sundry assets | 7,80,000 | S.Liabilities | 1,00,000 |
| To Bank | 1,00,000 | Creditor | |
| Creditor | Bank(assets realised) | 4,68,000 | |
| Loss | 3,12,000 | ||
| 8,80,000 | 8,80,000 | ||
Hence, the correct option is 3.
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