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 Naina is:
Answer & explanation
Correct answer: option 1
The correct answer is Option (1) - ₹ 34,600.
Realisation Account
| PARTICULARS | AMOUNT (₹) | PARTICULARS | AMOUNT (₹) |
| To Assets transferred : Machinery 80,000 Investments 50,000 Stock 22,000 Sundry debtors 1,03,000 |
2,55,000 | By Sundry creditors A/c | 60000 |
| To Bank A/c (realisation expenses) | 5,000 | By Bills payable A/c | 20000 |
| By Nayantara’s Capital A/c (investment taken over) | 50000 | ||
| By Naina’s Capital A/c (Debtors taken over) | 45,000 | ||
| By Bank A/c (Debtors realised) | 51,000 | ||
| By Loss transferred to : Naina’s capital A/c (34000 X 3/5) 20400 Nayantara’s capital A/c (34000 X 2/5) 13600 |
34000 | ||
| 2,60,000 | 2,60,000 |
PARTNER'S CAPITAL ACCOUNT
| PARTICULARS | NAINA (₹) | NAYANTARA (₹) | PARTICULARS | NAINA (₹) | NAYANTARA (₹) |
| To Realisation A/c (investment) | 50,000 | By Balance b/d | 1,00,000 | 80,000 | |
| To Realisation A/c (debtors) | 45,000 | ||||
| To Realisation A/c (loss) | 20,400 | 13,600 | |||
| To Bank A/c (Capital paid) | 34,600 | 16,400 | |||
| 1,00,000 | 80,000 | 1,00,000 | 80,000 |