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Question : Murari and Vohra of Chandigarh were partners in a firm with capitals of Rs. 1,20,000 and Rs. 1,60,000 respectively. On 1.4.2018 they admitted their manager, Robin Gurung of Meghalaya, as a partner for one-fourth share in profits on his payment of Rs.2,00,000 as his capital and Rs. 90,000 for his one-fourth share of goodwill.

On that date, the creditors of Murari and Vohra were Rs. 60,000 and Bank overdraft was Rs. 15,000. Their assets apart from cash included Stock Rs. 10,000 ; Debtors Rs.40,000; Plant and Machinery Rs.80,000; Land and Building Rs.2,00,000. It was agreed that stock should be depreciated by Rs.2,000; Plant and Machinery by 20%, Rs. 5,000 should be written off as bad debts and Land and Building should be appreciated by 25%.

Question:
Total assets side of new firm balance sheet is

Option 1: Rs 6,55,000

Option 2: Rs 6,57,000

Option 3: Rs 6,60,000

Option 4: Rs 6,00,000


Team Careers360 22nd Jan, 2024
Answer (1)
Team Careers360 24th Jan, 2024

Correct Answer: Rs 6,57,000


Solution : Answer = Rs 6,57,000

Total Assets = 1,78500 + 218500 + 200000 + 60,000+15000

= 6,57,000.
Hence, the correct option is 2.

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