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Question : On dissolution of a firm, its Balance Sheet revealed total creditors Rs.50,000; Total Capital Rs.48,000; Cash Balance Rs.3,000. Its assets were realised at 12% less. Loss on realisation will be _________.

Option 1: Rs.11,800

Option 2: Rs.6,000

Option 3: Rs.11,400

Option 4: Rs.5,600


Team Careers360 19th Jan, 2024
Answer (1)
Team Careers360 25th Jan, 2024

Correct Answer: Rs.11,400


Solution : Total balance of Liability side of Balance sheet = Total Capital + Total creditor i.e. 48000+50000 = 98000

Balance of Cash Rs.3000

Hence the Balnce figure of Rs. 95000 (98000-3000) Represent Assets.

Asset is sold less by 12%of its value, So cash Realised from asset is Rs.83600 (95000-12%)

Hence loss on Realosation will be Rs.98000-3000-83600= 11400

Hence the correct answer is option 3.

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