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Home Questions HJNRJX2J5R
Target Exam

CUET

Subject

Accountancy

Chapter

Dissolution of Partnership Firm

Question:

X & Y are partners sharing profits and losses in the ratio 4:3. They decide to dissolve the firm. On the date of dissolution following information is available-
X's Capital = ₹125030
Y's Capital = ₹2070
Creditors = ₹23150
Cash = ₹4520
Remaining assets realised at ₹124910 and the dissolution expenses are ₹1860. Both Partners are solvent.

What will be the profit or loss on realisation?

Options:

Profit (22680)

Loss (22680)

Profit (12980)

Loss ( 12980)

Correct Answer:

Loss (22680)

Explanation:
Particulars Amount (₹) Particulars Amount (₹)
To Assets 145730 By creditors 23150
To Cash A/c (Creditors paid) 23150 By Cash A/c (assets realised) 124910
To Cash A/c (expenses) 1860 By loss transferred to partners Capital A/c
X's Capital A/c                                12960
Y Capital A/c                                   9720		 22680
  170740   170740

 

NOTE-
Assets = Creditors + capital - cash
           = 23150 + 125030 + 2070 - 4520
           = ₹145730

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