Based on following case, answer question.
Nayana and Arushi were partners sharing profit equally. Their Balance Sheet as at March 31, 2017 was as follows:
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Balance Sheet of Nayana and Arushi as on March 31,2017 |
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Liabilities |
Amount (₹) |
Assets |
Amount (₹) |
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Capitals: Nayana 1,00,000 Arushi 50,000 Creditors Arushi’s Current account Workmen Compensation Reserve Bank overdraft |
1,50,000 20,000 10,000 15,000 5,000 |
Bank
Debtors Stock Furniture Machinery Nayana’s current account |
30,000
25,000 35,000 40,000 60,000 10,000 |
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2,00,000 |
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2,00,000 |
The firm was dissolved on the above date:
(1) Nayana took over 50% of the stock at 10% less on its book value, and the remaining stock was sold at a gain of 15%. Furniture and Machinery realised for ₹30,000 and ₹50,000 respectively.
(2) There was an unrecorded investment which was sold for ₹34,000
(3) Debtors realised 90% only and ₹1,200 were recovered for bad debts written-off last year.
(4) There was an outstanding bill for repairs which had to be paid for ₹2,000
Calculate the amount paid to creditors:
Answer & explanation
Correct answer: option 4
The correct answer is Option (4) → ₹20,000
Nothing is said about any discount or settlement with the creditors, so they are paid in full at their book value of ₹20,000.
The ₹27,000 paid in all = Creditors ₹20,000 + Bank overdraft ₹5,000 + Repair bill ₹2,000.
NCERT (2026-27 edition):
NCERT (2026-27 edition):
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