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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.


Team Careers360 15th Jan, 2024
Answer (1)
Team Careers360 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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