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.
Opening balance sheet is prepared to calculate the bank balance.
Opening balance sheet
| LIABILITIES | AMOUNT (₹) | ASSETS | AMOUNT (₹) |
| Creditors | 30,000 | Sundry assets | 2,70,000 |
| Reserve fund | 30,000 | Bank balance(balancing figure) | 30,000 |
| Capital A/c balance Sita 1,00,000 Rita 80,000 Meeta 60,000 |
2,40,000 | ||
| 3,00,000 | 3,00,000 |