From the information provided below, calculate various questions asked in questions.
Following is the Balance Sheet of Ashwani and Bharat on March 31, 2024.
Balance Sheet Ashwani and Bharat as on March 31, 2024
|
Liabilities |
Amount (₹) |
Assets |
Amount (₹) |
| Creditors | 76,000 | Cash at bank | 17,000 |
| Mrs. Ashwani's loan | 10,000 | Stock | 10,000 |
| Mrs. Bharat loan | 20,000 | Investments | 20,000 |
| Investment fluctuation reserve | 2,000 | Debtors- 40,000 Less: Provision for doubtful debts 4,000 |
36,000 |
| General Reserve | 20,000 | Buildings | 70,000 |
| Capitals: Ashwani- 20,000 Bharat - 20,000 |
40,000 | Goodwill | 15,000 |
| Total | 1,68,000 | Total | 1,68,000 |
The firm was dissolved on that date. The following was agreed transactions took place.
(i) Aswhani promised to pay Mrs. Ashwani's loan and took away stock for ₹8,000.
(ii) Bharat took away half of the investment at 10% less. Debtors realised for ₹38,000. Creditor's were paid at less of ₹380. Buildings realised for ₹1,30,000, Goodwill ₹12,000 and the remaining Investment were sold at ₹9,000. An old typewriter not recorded in the books was taken over by Bharat for ₹600. Realisation expenses amounted to ₹2,000.
Bank A/c is credited by the Realisation A/c by .......... amount in total.
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → ₹97,620
On dissolution, every payment the firm makes in cash to settle an outside liability, or to meet the cost of realisation, is debited to the Realisation Account and credited to the Bank Account. So the total credited to Bank is the sum of all such cash payments.
Mrs. Ashwani’s loan is not paid by the firm: Ashwani promised to pay it himself, so it is credited to his capital account and never passes through the Bank Account.
Cash paid by the firm:
Creditors = ₹76,000 − ₹380 = ₹75,620
Mrs. Bharat’s loan = ₹20,000
Realisation expenses = ₹2,000
Total credited to Bank = ₹75,620 + ₹20,000 + ₹2,000 = ₹97,620
Adding only the creditors and the expenses gives ₹77,620 and misses the loan of Mrs. Bharat, which the firm itself repays in cash.
NCERT (2026-27 edition):
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