From the information provided below, calculate various questions asked in questions.
Following is the Balance Sheet of Ashwani and Bharat on March 31, 2024.
Balance Sheet Ashwani and Bharat as on March 31, 2024
|
Liabilities |
Amount (₹) |
Assets |
Amount (₹) |
| Creditors | 76,000 | Cash at bank | 17,000 |
| Mrs. Ashwani's loan | 10,000 | Stock | 10,000 |
| Mrs. Bharat loan | 20,000 | Investments | 20,000 |
| Investment fluctuation reserve | 2,000 | Debtors- 40,000 Less: Provision for doubtful debts 4,000 |
36,000 |
| General Reserve | 20,000 | Buildings | 70,000 |
| Capitals: Ashwani- 20,000 Bharat - 20,000 |
40,000 | Goodwill | 15,000 |
| Total | 1,68,000 | Total | 1,68,000 |
The firm was dissolved on that date. The following was agreed transactions took place.
(i) Aswhani promised to pay Mrs. Ashwani's loan and took away stock for ₹8,000.
(ii) Bharat took away half of the investment at 10% less. Debtors realised for ₹38,000. Creditor's were paid at less of ₹380. Buildings realised for ₹1,30,000, Goodwill ₹12,000 and the remaining Investment were sold at ₹9,000. An old typewriter not recorded in the books was taken over by Bharat for ₹600. Realisation expenses amounted to ₹2,000.
For taking over investment, Bharat's capital will be:
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → Debited by ₹9,000
When a partner takes over an asset of the firm on dissolution, he pays for it out of his own claim on the firm. The entry is Partner’s Capital A/c Dr. To Realisation A/c, so his capital account is debited with the agreed value.
Investments in the books = ₹20,000
Half taken by Bharat = ₹20,000 × 1/2 = ₹10,000
Less 10% = ₹10,000 × 10/100 = ₹1,000
Agreed value = ₹10,000 − ₹1,000 = ₹9,000
₹18,000 would be 90% of the whole investment, but Bharat took only half of it.
NCERT (2026-27 edition):
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