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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.

How much capital is paid to the partner X?

Options:

₹125630

₹97200

₹112070

₹76500

Correct Answer:

₹112070

Explanation:

REALISATION ACCOUNT

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

This is the capital accounts of the partners.

Particulars X (₹) Y (₹) Particulars X (₹) Y (₹)
To Realisation A/c 12960 9720 By balance b/d 125030 2070
To Cash A/c (payment) 112070   By Cash A/c (brought cash)   7650
  125030 9720   125030 9720

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

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