Question : Phiu, Queen and Lilly commenced business on 1st April 2019 with capitals of:
Phiu -Rs. 2,00,000; Queen -Rs. 2,00,000 and Lilly -Rs. 1,00,000. Profits are shared in the ratio of 4:3:3. Capital carried interest @ 5% p.a. During the year 2019-20, the firm suffered a loss of Rs. 1,50,000 before allowing interest on capital. Drawings of each partner during the year were Rs. 20,000. On 31st March 2020, the partners agreed to dissolve the firm as it was no longer profitable. The creditors on that date were Rs. 40,000. The assets realised a net value of Rs. 3,20,000 and the expenses of realisation were Rs. 7,000.
The value of sundry assets are __________and loss of realization will be____________.
Option 1: The value of sundry assets are Rs 3,50,000, and loss on realisation Rs 17,000
Option 2: The value of sundry assets Rs 3,30,000 and loss on realization Rs 17000
Option 3: The value of Sunday assets Rs 33000 and loss on realization Rs 17000
Option 4: None of the above
Correct Answer: The value of sundry assets Rs 3,30,000 and loss on realization Rs 17000
Solution :
Answer =
The value of sundry assets is Rs 3,30,000 and the loss on realization is Rs 17,000
If there is a loss, no interest will be allowed on capital
| Memorandum Balance Sheet | |||
| Liabilities | Amount | Assets | Amount |
| Capitals | S.Assets (b/f) | 3,30,000 | |
| P[2,00,000-20,000-60,000] | 1,20,000 | ||
| Q[2,00,000-20,000-45,000] | 1,35,000 | ||
| L[1,00,000-20,000-45,000] | 1,35,000 | ||
| Creditor | 40,000 | ||
| 3,30,000 | 3,30,000 | ||
| Realisation A/c | |||
| To Sundry Assets | 3,30,000 | By Sundry Liabilities | |
| To Bank | By Creditor | 40,000 | |
| Creditor-40,000 | By Bank(assets realised) | 3,20,000 | |
| Exp-7,000 | 47,000 | By Loss | 17,000 |
| 3,77,000 | 3,77,000 | ||
Hence, the correct option is 2.
