The amount of sundry assets transferred to Realization account was Rs. 3,60,000; 50% of these have been sold at a profit of Rs. 75,000; 30% of the remaining assets were sold at a discount of 12% and remaining were taken over by Raman (a partner) at 25% above book value. At what value were the assets taken over by Raman:
Answer & explanation
Correct answer: option 1
The correct answer is Option (1) → Rs. 1,57,500
Only the part that was neither sold at a profit nor sold at a discount reaches Raman, and he takes it at 125% of its book value.
Assets transferred = Rs. 3,60,000
50% sold first = Rs. 1,80,000 of book value; Rs. 1,80,000 remains (the Rs. 75,000 profit does not change what remains)
30% of the remaining sold = Rs. 54,000 of book value (the 12% discount does not change what remains)
Left for Raman = Rs. 1,80,000 − Rs. 54,000 = Rs. 1,26,000 at book value
Taken over at 25% above book value = Rs. 1,26,000 × 125/100 = Rs. 1,57,500
Rs. 1,26,000 is only the book value of those assets; Raman pays 25% more than that. The amount at which he takes them over, Rs. 1,57,500, is debited to his Capital A/c and credited to Realisation A/c.
NCERT (2026-27 edition):
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