Read the following case study and answer the question: Naina and Nayantara are Partners in a firm, sharing profits in ratio 3: 2. They decided to dissolve their firm on 31, March 2021 when their Balance-Sheet was as follows:

Liabilities Amt. Amt. (₹) Assets Amt. (₹)
Capital: Machinery 80,000
Naina 1,00,000 Investment 50,000
Nayantara 80,000 1,80,000 Stock 22,000
Creditors 60,000 Debtors 1,03,000
Bills payable 20,000 Cash at Bank 5000
2,60,000 2,60,000
The Assets and liabilities were disposed off as follows:
(a) Machinery was given to creditors in full settlement of their amount and stock was given to Bills Payable in full settlement.
(b) Investment were taken over by Nayantara at book value.
(c) Debtors of book value ₹50,000 taken over by Naina at 10% less and remaining debtors realised ₹ 51,000.
(d) Realisation expenses amounted to ₹5,000.

Question

Read the following case study and answer the question: Naina and Nayantara are Partners in a firm, sharing profits in ratio 3: 2. They decided to dissolve their firm on 31, March 2021 when their Balance-Sheet was as follows:

Liabilities Amt.	Amt. (₹)	Assets	Amt. (₹)
Capital:		Machinery	80,000
Naina 1,00,000		Investment	50,000
Nayantara 80,000	1,80,000	Stock	22,000
Creditors	60,000	Debtors	1,03,000
Bills payable	20,000	Cash at Bank	5000
	2,60,000		2,60,000

The Assets and liabilities were disposed off as follows:
(a) Machinery was given to creditors in full settlement of their amount and stock was given to Bills Payable in full settlement.
(b) Investment were taken over by Nayantara at book value.
(c) Debtors of book value ₹50,000 taken over by Naina at 10% less and remaining debtors realised ₹ 51,000.
(d) Realisation expenses amounted to ₹5,000.

cdquestions Admin · Accepted Answer

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Amount of Debtors to be shown in Naina's capital A/c.

The Correct Option is C

Solution and Explanation

Amount of Profit/Loss on Realisation is :

The Correct Option is C

Solution and Explanation

Journal entry for payment of realisation expense will be:

The Correct Option is D

Solution and Explanation

Net amount payable to Naina is :

The Correct Option is A

Solution and Explanation

Net amount payable to Nayantara is

The Correct Option is B

Solution and Explanation

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