Read the following passage and answer the 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 = ₹1,25,030
Y's Capital = ₹2,070
Creditors = ₹23,150
Cash = ₹4,520
Remaining assets realised at ₹1,24,910 and the dissolution expenses are ₹1,860. Both Partners are solvent.
How much capital is brought by the partner Y?
Answer & explanation
Correct answer: option 3
The correct answer is option 3- ₹7,650.
REALISATION ACCOUNT
| Particulars | Amount (₹) | Particulars | Amount (₹) |
| To Assets | 1,45,730 | By creditors | 23,150 |
| To Cash A/c (Creditors paid) | 23,150 | By Cash A/c (assets realised) | 1,24,910 |
| To Cash A/c (expenses) | 1,860 | By loss transferred to partners Capital A/c (BAL FIG) X's Capital A/c 12,960 Y Capital A/c 9,720 |
22,680 |
| 1,70,740 | 1,70,740 |
CAPITAL ACCOUNT
| Particulars | X (₹) | Y (₹) | Particulars | X (₹) | Y (₹) |
| To Realisation A/c | 12,960 | 9,720 | By balance b/d | 1,25,030 | 2,070 |
| To Cash A/c (payment) | 1,12,070 | By Cash A/c (brought cash) | 7,650 | ||
| 1,25,030 | 9,720 | 1,25,030 | 9,720 |
NOTE
Remaining Assets = Creditors + capital - cash
= 23,150 + (1,25,030 + 2,070) - 4,520
= ₹1,45,730