Question : B a partner took Stock-in-Trade at Rs. 70,000 and some of the Sundry Assets at Rs. 72,000 (being 10% less than book value). The Book value of sundry assets taken over by B is ----B's capital account will be ...
Option 1: Rs 80,000 Debited by Rs 1,34,800
Option 2: Rs 64,800 Credited by Rs 1,34,800
Option 3: Rs 80,000 Debited by Rs 1,42,000
Option 4: None of the above
Correct Answer: Rs 80,000 Debited by Rs 1,42,000
Solution : Answer = Rs 80,000 Debited by Rs 1,42,000 Book value of sundry assets taken over by B Rs 80,000.
If the assets realised are 90, then the book value is Rs 100. Assets realised= [$\frac{100}{90} \times 72000$]= Rs 80,000. B's capital A/c Dr 1,42,000(70,000+72,000) To Realisation a/c 1,42,000. Hence, the correct option is 3.
Question : On dissolution I of the firm sundry assets were Rs 2,34,000. Mohit took part of sundry assets at Rs 1,44,000 ( being 10% less than the book value ). Sita took the remaining sundry assets 80% of the book value. The realization account is to be credited with
Option 1: Rs 2,03,200
Option 2: Rs 2,16,000
Option 3: Rs 1,44,000
Option 4: Rs 84,000
Question : Stock is overvalued by 10% (Book Value of Stock Rs.66,000), revaluation account will be ……
Option 1: Debited Rs 5,400
Option 2: Credited Rs6,000
Option 3: Debited Rs 6,000
Option 4: Credited with Rs 5,400
Question : Half of the Trade Creditors valued Rs 40,000 accepted Plant and Machinery at 10% less than the book value and Cash of Rs. 5,000 in full settlement of their claims. The remaining Trade Creditors were paid at a discount of 10%. The entry will be
Option 1: Realization account debited and Bank account credited by Rs 5,000
Option 2: Realization account debited and Bank account credited by Rs 36,000
Option 3: Realization account debited and Bank account credited by Rs 41,000
Option 4: Realization account debited and Bank account credited by Rs 80,000
Question : Book Value of assets (other than cash and bank) transferred to Realisation Account is Rs. 1,00,000. 50% of the assets are taken over by a partner Atul, at a discount of 20%; 40% of the remaining assets are sold at a profit of 30% on cost; 5% of the balance being obsolete, realised nothing and remaining assets are handed over to a Creditor, in full settlement of his claim. The entry will be
Option 1: Debited bank account Rs 52,000 and debited partner's capital account with Rs 40,000 credited realization account Rs 92,000
Option 2: Debited bank account Rs 40,000 and partners capital account Rs 52,000 credited realization account Rs 92,000
Option 3: Debited bank account Rs 50,000 and partner's capital account with Rs 50,000 credited realization account Rs 1,00,000
Question :
Stock is undervalued by 10% (Book Value of Stock Rs.54,000), Revaluation account will be
Option 1: Debited with Rs 5400
Option 2: Credited with Rs 5,400
Option 4: Credited Rs 6,000
Regular exam updates, QnA, Predictors, College Applications & E-books now on your Mobile