Read the following case study and answer the question:
Naina and Nayantara are Partners in a firm, sharing profits in ratio 3 : 2. They decided to dissolve their firm on 31, March 2021 when their Balance-Sheet was as follows:
|
Liabilities |
Amt. (₹) |
Assets |
Amt. (₹) |
|
Capital: Naina 1,00,000 Nayantara 80,000 Creditors Bills Payable |
1,80,000 60,000 20,000 |
Machinery Investment Stock Debtors Cash at Bank |
80,000 50,000 22,000 1,03,000 5,000 |
|
|
2,60,000 |
|
2,60,000 |
The Assets and liabilities were disposed off as follows:
(a) Machinery was given to creditors in full settlement of their amount and stock was given to Bills Payable in full settlement.
(b) Investment were taken over by Nayantara at book value.
(c) Debtors of book value ₹50,000 taken over by Naina at 10% less and remaining debtors realised ₹51,000.
(d) Realisation expenses amounted to ₹5,000.
Net amount payable to Nayantara is ________.
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → ₹ 16,400
Nayantara is paid what is left in her capital account after she is charged with the asset she took over and with her share of the loss on realisation.
Machinery given to creditors and stock given to bills payable in full settlement need no cash, so both sides go through the Realisation Account at book value.
Realisation Account, debit side:
Machinery + Investment + Stock + Debtors = ₹80,000 + ₹50,000 + ₹22,000 + ₹1,03,000 = ₹2,55,000
Realisation expenses = ₹5,000
Total debit = ₹2,60,000
Realisation Account, credit side:
Creditors ₹60,000 + Bills payable ₹20,000 = ₹80,000
Investment taken over by Nayantara = ₹50,000
Debtors taken over by Naina = ₹50,000 − 10% = ₹45,000
Remaining debtors realised in cash = ₹51,000
Total credit = ₹2,26,000
Loss on realisation = ₹2,60,000 − ₹2,26,000 = ₹34,000
Nayantara’s share (2/5) = ₹13,600
Nayantara’s Capital Account:
Opening balance = ₹80,000
Less: Investment taken over = ₹50,000
Less: Share of loss = ₹13,600
Amount paid to her = ₹16,400
Check: Bank ₹5,000 + ₹51,000 − expenses ₹5,000 = ₹51,000, which pays Naina ₹34,600 and Nayantara ₹16,400.
NCERT (2026-27 edition):
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