Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Dissolution of Partnership Firm

Question:

Meena and Tina are partners in a firm and share profit as 3:2. They decided to dissolve their firm on March 31, 2017, when their Balance Sheet was as follows:

Balance Sheet Meena and Tina as of March 31,2017

 Liabilities Amount (₹) Assets Amount (₹)
Capital:    Machinery 70,000
Meena 90000   Investments 50,000
Tina    80000 170000 Stock 22,000
Sundry creditors 60000 Sundry Debtors 103000
Bills payable 20000 Cash at bank 5000
  250000   250000


The assets and liabilities were disposed off as follows:
a) Machinery were given to creditors in full settlement of their account and stock were given bills payable in full settlement.
b) Investment were took over by Tina at book value. Sundry debtors of book value ₹50,000 took over by Meena at 10% less and remaining debtors realised ₹51,000.
c) Realisation expenses amount to ₹2,000.

Identify the amount realised in cash from sundry debtors.

Options:

₹96000

₹103000

₹100000

₹51000

Correct Answer:

₹51000

Explanation:

Total debtors Book value = ₹103000
Sundry debtors of book value ₹50,000 took over by Meena at 10% less and remaining debtors realised ₹51,000.
This is given in question that the remaining debtors are realised at ₹51000 so the cash realised from remaining debtors is ₹51000.