Question : On dissolution of a firm, the firm's Balance Sheet total is Rs. 7,70,000. On the assets side of the Balance Sheet items were shown preliminary expenses of Rs. 20,000; a Profit & Loss Account (Debit) Balance of Rs.8000 and a Cash Balance of Rs.18000. Loss on realisation was Rs. 63,000. Total assets (including cash balance) realised will be :
Option 1: Rs 6,61,000
Option 2: Rs 7,10,000
Option 3: Rs 6,47,000
Option 4: Rs 6,29,000
Correct Answer: Rs 6,61,000
Solution : Answer = Rs 6,61,000
Realisation a/c | |||
To S.Assets | 86,000 | S.Liabilities | |
Creditor | 12,000 | ||
To Cash (creditor) | 12,000 | Cash (Assets realised) (B/F) | 93,800 |
To Profit | 7,800 | ||
1,05,800 | 1,05,800 |
Hence, the correct option is 1.