16 Views

Question : There are two partners A and B in a firm and their capitals are Rs. 50,000 and Rs. 40,000. The creditors are Rs. 30,000. The assets of the firm realise Rs. 1,00,000. How much will A and B receive or be paid?

Option 1: A's capital account debited Rs 40,000, and credited bank account Rs 40,000

Option 2: B's capital account debited Rs 30,000 and credited bank account Rs 30,000

Option 3: Both 1 and 2

Option 4: None of the above


Team Careers360 23rd Jan, 2024
Answer (1)
Team Careers360 24th Jan, 2024

Correct Answer: Both 1 and 2


Solution : Answer = Both 1 and 2

Partner's capital a/c
A B A B
To Realisation (loss) 10,000 10,000 By Bal b/d 50,000 40,000
To Bank (b/f) 40,000 30,000
50,000 40,000 50,000 40,000

Realisation A/c
To Sundry assets 1,20,000 By Cash (assets realised) 1,00,000
By Loss 20,000
1,20,000 1,20,000

Memorandum Balance Sheet
Liabilities Amount Assets Amount
Capitals S. Assets (b/f) 1,20,000
A 50,000
B 40,000
Creditors 30,000
1,20,000 1,20,000

Hence, the correct option is 3.

Related Questions

Chandigarh University Admissi...
Apply
Ranked #1 Among all Private Indian Universities in QS Asia Rankings 2025 | Scholarships worth 210 CR
TAPMI MBA 2025 | Technology M...
Apply
MBA Admission Open in Technology Management and AI & Data Science | NAAC A++ | Institution of Eminence | Assured Scholarships
Sanskriti University LLM Admi...
Apply
Best innovation and research-driven university of Uttar Pradesh
Maya Devi University LLM admi...
Apply
43.6 LPA Highest Package | 5.48 LPA Average Package | 150+ Courses in UG, PG, Ph.D
Amity University, Noida Law A...
Apply
700+ Campus placements at top national and global law firms, corporates, and judiciaries
Shri Khushal Das University L...
Apply
Approved by UGC | Robust Placement Assistance
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