Question

Aavya, Mitansh and Praveen were partners in a firm. On 31st March, 2023, the firm was dissolved. Creditors took over furniture of book value of Rs. 50,000 at Rs. 45,000 in part settlement of their amount of Rs. 60,000. The balance amount was paid to them through cheque. The amount paid through cheque will be:

• A. Rs. 10,000
• B. Rs. 50,000
• C. Rs. 45,000
• D. Rs. 15,000

Hint:

In dissolution of partnership, if creditors take over an asset in settlement, subtract the value accepted from the total liability to find the remaining amount payable.

Answer 1

The Correct Option is D

Step 1: Determine the total liability to creditors.
Total amount payable to creditors = Rs. 60,000.
Step 2: Value of asset taken by creditors.
Creditors accepted furniture at Rs. 45,000 in part settlement of their dues.
Step 3: Calculate the remaining balance.
\[ \text{Balance payable} = 60,000 - 45,000 \] \[ = 15,000 \]
Step 4: Payment through cheque.
The remaining balance of Rs. 15,000 was paid to creditors through cheque.
Final Answer: Rs. 15,000.