Target Exam

CUET

Subject

-- Accountancy Part A

Chapter

Dissolution of Partnership Firm

Question:

READ THE FOLLOWING INFORMATION AND ANSWER THE FOLLOWING QUESTION.

X, Y & Z are partners in a partnership firm. They decided to dissolve the firm for which firm borne the realisation expenses of ₹20,000. On the date of dissolution following information is available-
X's Capital = ₹5,00,000
Y's Capital = ₹5,00,000
Z's Capital = ₹3,00,000
Creditors = ₹2,00,000
Cash = ₹3,00,000
Profit and loss credit balance = ₹1,50,000
Loan to Y = ₹1,00,000
Land & building = ₹8,00,000
Investments = ₹2,00,000
Debtors = ₹1,00,000
Stock = ₹1,50,000
Land & building sold at a profit of 12.5%. Debtors are realised at ₹90,000 whereas stock is realised at ₹1,40,000. X take over the investments for ₹1,90,000. All the creditors are paid by the firm on which firm got discount of 5%.

Which of the following partner will bring cash to meet deficiency in his account?

Options:

X

Y

Z

None of these

Correct Answer:

None of these

Explanation:

The correct answer is option 4- None of these.

Capital accounts of partners

Particulars X (₹) Y (₹) Z (₹) Particulars X (₹) Y (₹) Z (₹)
To Realisation A/c
(Investments)
1,90,000     By balance b/d 5,00,000 5,00,000 3,00,000
To Bank A/c (final payment) 3,80,000  5,70,000 3,70,000 By profit & loss 50,000 50,000 50,000
         By Realisation A/c (profit) 20,000 20,000 20,000
  5,70,000 5,70,000 3,70,000   5,70,000 5,70,000 3,70,000

Payment is made by the firm to all the partners as there is no deficiency, which means no partner bring any amount.