Question

Lata, Mehu, and Namita were partners in a firm sharing profits and losses in the ratio of \( 3 : 2 : 1 \). They decided to dissolve the firm on 31st March, 2023. Creditors took over stock of book value of ₹ 80,000 at 80\%, in part settlement of their amount of ₹ 90,000. The balance amount was paid to the creditors by cheque. The amount paid by cheque to the creditors will be:

• A. ₹ 26,000
• B. ₹ 64,000
• C. ₹ 80,000
• D. ₹ 1,44,000

Hint:

In settlement cases, calculate the amount taken over or settled first, then subtract this amount from the total to determine the balance to be paid.

Answer 1

The Correct Option is A

Amount settled by creditors = ₹ 80,000 \( \times \) 80\% = ₹ 64,000. The balance amount paid to creditors = ₹ 90,000 - ₹ 64,000 = ₹ 26,000. Thus, the amount paid by cheque to the creditors is ₹ 26,000.