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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 )


Team Careers360 3rd Jan, 2024
Answer (1)
Team Careers360 8th Jan, 2024

Correct Answer: Rs 1,50,000 (loss )


Solution : Answer = Rs 1,50,000 (loss)

Total assets = Firm's capital + outsiders' liabilities

= 6,00,000 + 3,50,000 = 9,50,000

Realisation A/c
To Sundry Assets(Except cash) 9,00000 Sundry liab. outsider' liab 3,50,000
To bank(outsiders liab) 3,50,000 Bank (Assets realised) 7,50,000
Loss 1,50,000
12,50,000 12,50,000

Hence, the correct option is 4.

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