Sita, Rita and Meeta are partners sharing profits and losses equally. On 31st March, 2022, they decided to dissolve the business. On that date, the Capital Account Balance were Sita-₹1,00,000; Rita-₹80,000 and Meeta-₹60,000. Creditors for ₹30,000 and Reserve Fund for ₹30,000 were also lying in the books of the firm while on Assets side, Sundry Assets were existing at ₹2,70,000. Sundry assets included patents for ₹20,000. The tangible assets were realised at 90% of the book value while creditors were settled at 110%. Realisation expenses were ₹10,000 paid by Sita. There was an unrecorded assets of ₹5,000 which was taken over by Meeta.
Answer question on the basis of above information.
Select the realisable value of Intangible Assets from the following.
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → Nil
The only intangible asset is patents (₹20,000). The question gives a realised value only for the tangible assets (90% of ₹2,50,000 = ₹2,25,000) and none for patents, so patents are taken to realise nothing.
Realisable value of intangible assets = Nil