Sita, Rita and Meeta are partners sharing profits and losses equally. On 31st March, 2022, they decided to dissolve the business. On that date, the Capital Account Balance were Sita-₹1,00,000; Rita-₹80,000 and Meeta-₹60,000. Creditors for ₹30,000 and Reserve Fund for ₹30,000 were also lying in the books of the firm while on Assets side, Sundry Assets were existing at ₹2,70,000. Sundry assets included patents for ₹20,000. The tangible assets were realised at 90% of the book value while creditors were settled at 110%. Realisation expenses were ₹10,000 paid by Sita. There was an unrecorded assets of ₹5,000 which was taken over by Meeta.
Answer question on the basis of above information.
Calculate the balance of Bank A/c of the firm before dissolution?
Answer & explanation
Correct answer: option 4
The correct answer is Option (4) → ₹30,000
The bank balance is the balancing figure of the Balance Sheet on the date of dissolution.
Liabilities = Capitals (₹1,00,000 + ₹80,000 + ₹60,000) + Creditors ₹30,000 + Reserve Fund ₹30,000 = ₹3,00,000
Assets other than bank = Sundry Assets ₹2,70,000
Bank balance = ₹3,00,000 − ₹2,70,000 = ₹30,000