A partner Varun, took 60% of the furniture at a discount of 10%. The remaining furniture was sold at a profit of 20% of the cost. The book Value of the furniture was ₹6,00,000. The amount debited to Bank would be -
Answer & explanation
Correct answer: option 1
The correct answer is option 1- ₹2,88,000.
The book Value of the furniture was ₹6,00,000
Varun, took 60% of the furniture at a discount of 10%.
Varun takes over = 6,00,000 x 60/100
= 3,60,000
Remaining Furniture = 6,00,000 - 3,60,000
= 2,40,000
The remaining furniture was sold at a profit of 20% of the cost.
Profit = 2,40,000 x 20/100
= ₹48,000
Total sold amount = 2,40,000 + 48,000
= ₹2,88,000
₹2,88,000 debited to the bank as bank balance is increased by this amount.