4 Views

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 23rd Jan, 2024
Answer (1)
Team Careers360 25th 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.

Related Questions

Amity University, Noida Law A...
Apply
700+ Campus placements at top national and global law firms, corporates, and judiciaries
UPES Integrated LLB Admission...
Apply
Ranked #28 amongst Institutions in India by NIRF | Ranked #1 in India for Academic Reputation by QS University Rankings | 16.6 LPA Highest CTC
Great Lakes PGPM & PGDM 2025
Apply
Admissions Open | Globally Recognized by AACSB (US) & AMBA (UK) | 17.3 LPA Avg. CTC for PGPM 2024 | Extended Application Deadline: 10th Jan 2024
Amity University Noida B.Tech...
Apply
Among Top 30 National Universities for Engineering (NIRF 2024)
ISBR Business School PGDM Adm...
Apply
250+ Companies | Highest CTC 16 LPA | Average CTC 8 LPA | Ranked as Platinum Institute by AICTE for 6 years in a row | Awarded Best Business School...
Chandigarh University Admissi...
Apply
Ranked #1 Among all Private Indian Universities in QS Asia Rankings 2025 | Scholarships worth 210 CR
View All Application Forms

Download the Careers360 App on your Android phone

Regular exam updates, QnA, Predictors, College Applications & E-books now on your Mobile

150M+ Students
30,000+ Colleges
500+ Exams
1500+ E-books