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Target Exam

CUET

Subject

-- Accountancy Part A

Chapter

Dissolution of Partnership Firm

Question:

READ THE FOLLOWING INFORMATION AND ANSWER THE FOLLOWING 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
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%.

How much amount is finally paid to partner Y?

Options:

₹3,80,000

₹4,50,000

₹3,70,000

₹5,70,000

Correct Answer:

₹5,70,000

Explanation:

The correct answer is option 4- ₹5,70,000.

Capital accounts of partners

Particulars X (₹) Y (₹) Z (₹) Particulars X (₹) Y (₹) Z (₹)
To Realisation A/c
(Investments)		 1,90,000     By balance b/d 5,00,000 5,00,000 3,00,000
To Bank A/c (final payment) 3,80,000  5,70,000 3,70,000 By profit & loss 50,000 50,000 50,000
         By Realisation A/c (profit) 20,000 20,000 20,000
  5,70,000 5,70,000 3,70,000   5,70,000 5,70,000 3,70,000

Payment to Y is made for 5,70,000.

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