Question : Adiraj and Karan were partners in a firm sharing profits and losses in the ratio 3: 2. On 31st March 2018 the firm was dissolved. After the transfer of assets (other than cash in hand and at the bank) and third-party liabilities to the Realization Account, the following information was provided:
Question:
Realisation expenses amounted to Rs. 2,000 which were paid by Adiraj.

Option 1: Realization account debited Rs 2,000, credited bank account Rs 2,000

Option 2: Debited partner's capital account Rs 2,000 and credited bank account Rs 2,000

Option 3: Realization account debited Rs 2,000, credited partner's capital Rs 2,000

Option 4: None of the above

Question : A, B and C started business on 1st April 2019 with capitals of Rs. 1,00,000; Rs. 80,000 and Rs. 60,000 respectively sharing profits (losses) in the ratio of 4:3:3. For the year ended 31st March 2020, the firm incurred a loss of Rs. 50,000. Each of the partners withdrew Rs. 10,000 during the year.

On 31st March 2020, the firm was dissolved, the creditors of the firm stood at Rs. 24,000 on that date and Cash in Hand was Rs. 4,000. The assets realised Rs. 3,00,000 and Creditors were paid Rs. 23,500 in full settlement of their claims.
Question:
In case of profit and loss on realization. Realization account will be debited/credited by

Option 1: Partner's capital account debited and credited realization account by Rs 1,20,500

Option 2: Realization account debited and partner's capital account credited by Rs 1,20,500

Option 3: Profit and loss account debited and credited partner's capital account

Option 4: None of the above

Question : There are two partners A and B in a firm and their capitals are Rs. 50,000 and Rs. 40,000. The creditors are Rs. 30,000. The assets of the firm realise Rs. 1,00,000. How much will A and B receive or be paid?

Option 1: A's capital account debited Rs 40,000, and credited bank account Rs 40,000

Option 2: B's capital account debited Rs 30,000 and credited bank account Rs 30,000

Option 3: Both 1 and 2

Option 4: None of the above

Question : Realization expenses of Rs. 5,000 were to be borne by Pavit, a partner. However, it was paid by Hitesh, another partner. It was to be recorded in the books. The entry will be

Option 1: Debited realisation account Rs 5,000, credited Pavit's capital account Rs 5,000

Option 2: Debited realisation account Rs 5,000, credited Bank account Rs 5,000

Option 3: Debited realisation account Rs 5,000 and credited Hitesh's capital account Rs 5,000

Option 4: Debited Pavit's capital account and credited Hitesh's capital account Rs 5,000

Question : In the Settlement Of Varun's ( partner) loan Of Rs 50,00 to the firm, a computer net appearing in the books is taken over by him at an agreed value of Rs 30,000.
The realization account will be

Option 1: Debited by Rs 30,000

Option 2: Credited by Rs 30,000

Option 3: Debited by Rs 50,000

Option 4: Credited by Rs 50,000