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Target Exam

CUET

Subject

-- Accountancy Part A

Chapter

Dissolution of Partnership Firm

Question:

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 paid to the partner X?

Options:

₹1,25,630

₹97,200

₹1,12,070

₹76,500

Correct Answer:

₹1,12,070

Explanation:

The correct answer is option 3- ₹1,12,070.

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

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