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 ₹30,000 and ₹50,000 respectively. | ||||||||||||||||
Calculate the amount paid to creditors: |
₹27,000 ₹22,000 No amount was paid ₹20,000 |
₹20,000 |
The correct answer is Option (4) → ₹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 20,000. |