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Question : On dissolution of a firm, its balance sheet revealed total creditors of Rs 50,000. Total capital Rs 48,000, Cash balance Rs 3000. Its assets were realized at rs 12% less. The loss on realization will be.

Option 1: Rs 12,400

Option 2: Rs 11,400

Option 3: Rs 10,000

Option 4: None of the above.


Team Careers360 5th Jan, 2024
Answer (1)
Team Careers360 23rd Jan, 2024

Correct Answer: Rs 11,400


Solution : Answer = Rs 11,400

Memorandum balance sheet
Capitals 48,000 Cash 3,000
Creditors 50,000 S.Assets(b/f) 95,000
98,000 98,000

Realisation a/c
To Sundry assets 95,000 By S.Liabilities 50,000
To Cash(liabilities paid) 50,000 By Cash(assets realised) 83,600
(95000-11400)
By Loss 11,400
1,45,000 1,45,000

Hence, the correct option is 2.

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