On dissolution of a firm, its Balance Sheet revealed total creditors ₹50,000; Total Capital ₹48,000; Cash Balance ₹3,000. Its assets were realised at 12% less. Total value of assets realised is.........
Answer & explanation
Correct answer: option 3
The correct answer is option 3- ₹83,600.
Assets = (Creditors + Total Capital - cash)
= (50,000 + 48,000 - 3000)
= 95,000
Assets of 95,000 are realised at 88%
Realisation amount = 95,000 x 88/100
= 83,600