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 90,000 | Investments | 50,000 | |
| Tina 80,000 | 1,70,000 | Stock | 22,000 |
| Sundry creditors | 60,000 | Sundry Debtors | 1,03,000 |
| Bills payable | 20,000 | Cash at bank | 5,000 |
| 2,50,000 | 2,50,000 |
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.
Answer & explanation
Correct answer: option 4
The correct answer is Option (4) → ₹51,000
Only the debtors that are actually collected bring cash into the firm. Debtors taken over by a partner are settled through his capital account, not in cash.
Total debtors = ₹1,03,000
Taken over by Meena (book value ₹50,000 at 10% less) = ₹45,000, through her capital account
Remaining debtors realised in cash = ₹51,000
₹96,000 adds Meena’s ₹45,000 to the cash collected, but no cash comes in for her share; ₹1,03,000 is only the book value of all debtors.
NCERT (2026-27 edition):
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