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:
(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 Rs. 30,000 and Rs. 50,000 respectively. |
Calculate the amount paid to creditors: |
Rs. 27,000 Rs. 22,000 No amount was paid Rs. 20,000 |
Rs. 20,000 |
The correct answer is Option (4) → Rs. 20,000 As no information is given about creditors so it is assumed that they are paid at book value so amount paid to creditors is 20000. |