At the time of dissolution, a firm transferred ₹1,00,000 Assets to the realization account and 50% of the assets were taken over by Kiran at 20% discount. How much net assets were taken over by Kiran?
Answer & explanation
Correct answer: option 4
The correct answer is option 4- ₹40,000.
Total assets = 1,00,000
50% of the assets were taken over by Kiran at 20% discount.
So, 50% assets = 1,00,000 x 50/100
= 50,000
Discount = 20%
Discount amount = 50,000 x 20/100
= 10,000
Net asset taken over Kiran = 50,000 - 10,000
= 40,000