Get Started
Start Free Mocks
CUETMOCK

Ace Your

CUET Preparation Today

Start Free Mocks
Home Questions QAPPUJG4H9
Target Exam

CUET

Subject

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

₹5,70,000

₹3,70,000

₹4,70,000

Correct Answer:

₹4,70,000

Explanation:

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

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
Loan    1,00,000   By profit & loss 50,000 50,000 50,000
 To Bank A/c (final payment)  3,80,000  4,70,000  3,70,000  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 4,70,000.

Loan to a partner Y (Asset): Recovered by debiting their capital account.

REALISATION ACCOUNT

Particulars Amount (₹) Particulars Amount (₹)
To Assets
(Transfer of assets)
L & B 8,00,000
Investments 2,00,000
Debtors 1,00,000
Stock 1,50,000		 12,50,000 By Creditors
(Transfer of liability)		  2,00,000
To Bank A/c
(creditors paid)		 1,90,000 By Bank A/c
(Assets realised)
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
X 20,000
Y 20,000
Z 20,000		 60,000    
  15,20,000   15,20,000

No profit sharing ratio is given, so profits are shared equally between partners.
Y share in profit = 60,000 x 1/3
                          = 20,000

CUET Questions