The amount paid/received to from Meena and Tina on account of final s…

Based on following answer the question.

Meena and Tina are partners in a firm and sharing profit as 3 : 2. They decided to dissolve their firm on March 31, 2017 when their Balance Sheet was as follows:

Balance Sheet Meena and Tina as on March 31, 2017

Liabilities	Amount (₹)	Assets	Amount (₹)
Capital		Machinery	70,000
Meena 90,000		Investments	50,000
Tina 80,000	1,70,000	Stock	22,000
Sundry creditors	60,000	Sundry debtors	1,03,000
Bills payable	20,000	Cash at bank	5,000
	2,50,000		2,50,000

The assets and liabilities were disposed off as follows:

a. Machinery were given to creditors in full settlement of their account and stock were given to bills payable in full settlement
b. Investment were took over by Tina at book value. Sundry debtors of book value ₹50,000 took over by Meena at 10% less and remaining debtors realised ₹51,000.
c. Realisation expenses amount to ₹2,000.

The amount paid/received to from Meena and Tina on account of final settlement is :

Answer & explanation

Correct answer: option 3

The correct answer is Option (3) - Paid to Meena ₹32,400; paid to Tina ₹21,600.

Realisation Account

PARTICULARS	AMOUNT (₹)	PARTICULARS	AMOUNT (₹)
To Assets transferred : Machinery 70,000 Investments 50,000 Stock 22,000 Sundry debtors 1,03,000	2,45,000	By Sundry creditors A/c	60,000
To Bank A/c (realisation expenses)	2,000	By Bills payable A/c	20,000
		By Tina’s Capital A/c (investment)	50,000
		By Meena’s Capital A/c (Debtors taken over)	45,000
		By Bank A/c (Debtors realised)	51,000
		By Loss transferred to : Meena’s capital A/c (21000 X 3/5) 12,600 Tena’s capital A/c (21000 X 2/5) 8,400	21,000
	2,47,000		2,47,000

PARTNER'S CAPITAL ACCOUNT

PARTICULARS	MEENA (₹)	TINA (₹)	PARTICULARS	MEENA (₹)	TINA (₹)
To Realisation A/c (investment)		50,000	By Balance b/d	90,000	80,000
To Realisation A/c (debtors)	45,000
To Realisation A/c (loss)	12,600	8,400
To Bank A/c (Capital paid)	32,400	21,600
	90,000	80,000		90,000	80,000