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Home Questions KHNSAY52NC
Target Exam

CUET

Subject

Accountancy

Chapter

Dissolution of Partnership Firm

Question:

X, Y & Z are partners in a partnership firm. They decided to dissolve the firm for which firm borne the realisation expenses of ₹20,000. On the date of dissolution following information is available-

X's Capital = ₹5,00,000
Y's Capital = ₹5,00,000
Z's Capital = ₹3,00,000
Creditors = ₹2,00,000
Cash = ₹3,00,000
Profit and loss credit balance = ₹1,50,000
Loan to Y = ₹1,00,000
Land & building = ₹8,00,000
Investments = ₹2,00,000
Debtors = ₹1,00,000
Stock = ₹1,50,000

ADDITIONAL INFORMATION-

  • Land & building sold at a profit of 12.5%.
  • Debtors are realised at ₹90,000 whereas stock is realised at ₹1,40,000.
  • X take over the investments for ₹1,90,000.
  • All the creditors are paid by the firm on which firm got discount of 5%.

What is amount of gain on realisation account?

Options:

₹20,000

₹60,000

₹40,000

₹80,000

Correct Answer:

₹60,000

Explanation:

The correct answer is option 2- ₹60,000.

REALISATION ACCOUNT

Particulars Amount (₹) Particulars Amount (₹)
To Assets
L & B 8,00,000
Investments 2,00,000
Debtors 1,00,000
Stock 1,50,000		 12,50,000 By Creditors  2,00,000
To Bank A/c (creditors paid) 1,90,000 By Bank A/c
L & B 9,00,000
Debtors 90,000
Stock 1,40,000		 11,30,000
To Bank A/c (expenses) 20,000 By X's Capital A/c (investments) 1,90,000
To profit transferred to Partner's Capital A/c (BAL FIG.)
X 20,000
Y 20,000
Z 20,000		 60,000    
  15,20,000   15,20,000

 

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