Question : On dissolution of a firm, its Balance Sheet revealed total creditors Rs.50,000; Total Capital Rs.48,000; Cash Balance Rs.3,000. Its assets were realised at 12% less. Loss on realisation will be _________.
Option 1: Rs.11,800
Option 2: Rs.6,000
Option 3: Rs.11,400
Option 4: Rs.5,600
Answer (1)
25th Jan, 2024
Correct Answer: Rs.11,400
Solution : Total balance of Liability side of Balance sheet = Total Capital + Total creditor i.e. 48000+50000 = 98000
Balance of Cash Rs.3000
Hence the Balnce figure of Rs. 95000 (98000-3000) Represent Assets.
Asset is sold less by 12%of its value, So cash Realised from asset is Rs.83600 (95000-12%)
Hence loss on Realosation will be Rs.98000-3000-83600= 11400
Hence the correct answer is option 3.
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