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 31\textsuperscript{st March, 2023. Creditors took over stock of book value ₹ 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:

Always calculate the value of assets taken over by creditors before determining the balance payment.

Answer 1

The Correct Option is A

Calculate the value of stock taken by creditors: \[ \text{Value of Stock} = ₹ 80,000 \times \frac{80}{100} = ₹ 64,000. \] The remaining amount to be paid is: \[ \text{Amount Paid by Cheque} = ₹ 90,000 - ₹ 64,000 = ₹ 26,000. \]