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Question : On dissolution of a firm, its Balance Sheet revealed total creditors of Rs.50,000; Total Capital of Rs.48,000; Cash Balance of Rs.3,000. Its assets were realized at 12% less. What will be the loss on realisation?

Option 1: Rs.11,600

Option 2: Rs.11,500

Option 3: Rs.11,400

Option 4: Rs.15,400


Team Careers360 11th Jan, 2024
Answer (1)
Team Careers360 19th Jan, 2024

Correct Answer: Rs.11,400


Solution : Answer = 11,400

Memorandum Balance Sheet
Creditor 50,000 Cash 3,000
Capitals 48,000 S.Assets(b/f) 95,000
98,000 98,000

Realisation A/c
To S.Assets 95,000 By S. Liabilities
To Cash By Creditor 50,000
Creditor 50,000 By Cash (assets realised) 83,600
By Loss 11,400
1,45,000 1,45,000

Hence, the correct option is 3.

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