Question : An unrecorded asset was valued at Rs 2,00,000. On firm's dissolution. It was sold for Rs 125%. The realization account will be credited with

Option 1: Rs 2,00,000

Option 2: Rs 2,50,000

Option 3: Rs 1,50,000

Option 4: None of the above

Question : Mohan and Kanwar are partners in a firm. Their firm was dissolved on 1.1.2013. Mohan was assigned the work of dissolution. For this work Mohan was to be paid Rs.500. Mohan paid dissolution expenses of Rs.400 from his own pocket. Choose the correct Journal entry

Option 1: Debited realization account by Rs 400 and credited bank account Rs 400

Option 2: Debited realization account by Rs 900 and credited mohan's capital account Rs 900

Option 3: Debited realization account Rs 500 credited Moahn's capital acccout Rs 400 and bank account Rs 100

Option 4: None of the above

Question : Harsh's loan of Rs. 6,000 was settled by paying Rs. 5,500. Choose the correct journal entry

Option 1: Harsh's loan account debited Rs 6000 and credited bank account Rs 6000

Option 2: Harsh's loan account debited Rs 5500 and credited bank account Rs 5500

Option 3: Harsh's loan account debited Rs 6000 , credited bank account Rs 5500 and credited realization account Rs 500

Option 4: None of the above

Question : At the time of dissolution of the firm, outsiders liabilities are Rs 3,50,000. Firm's capital is Rs 6,00,000. Cash balance is rs 50,000. Other assets realized Rs 7,50,000. Profit / loss in the realization account will be .

Option 1: 1,50,000 ( Gain )

Option 2: Rs 2,00,000 (gain )

Option 3: Rs 2,00,000 (loss)

Option 4: Rs 1,50,000 (loss )

Question : At the time of dissolution of the firm, outsiders liabilities are Rs 3,50,000. Firm's capital is Rs 6,00,000. Cash balance is rs 50,000. Other assets realized Rs 7,50,000. Profit / loss in the realization account will be .

Option 1: 1,50,000 ( Gain )

Option 2: Rs 2,00,000 (gain )

Option 3: Rs 2,00,000 (loss)

Option 4: Rs 1,50,000 (loss )