Comprehension From the information provided below, calculate various questions asked in questions Following is the Balance Sheet of Ashwani and Bharat on March 31, 2024. Balance Sheet Ashwani and Bharat as on March 31, 2024, Liabilities, Amount (₹), Assets, Amount (₹), Creditors, 76,000, Cash at bank, 17,000, Mrs.Ashwani's loan, 10,000, Stock, 10,000, Mrs.Bharat loan, 20,000, Investments, 20,000, Investment fluctuation reserve, 2,000, Debtors 40,000 Less: Provision for doubtful debts 4,000, 36,000, General Reserve, 20,000, Buildings, 70,000, Capitals: Ashwani 20,000 Bharat 20,000, 40,000, Goodwill, 15,000, Total, 1,68,000, Total, 1,68,000, The firm was dissolved on that date. The following was agreed transactions took place: 1. Ashwani promised to pay Mrs. Ashwani’s loan and took away stock for Rs. 8,000. 2. Bharat took away half of the investment at 10% less. Debtors realised for Rs. 38,000. Creditor’s were paid at less of Rs. 380. Buildings realised for Rs. 1,30,000. Goodwill Rs. 12,000 and the remaining Investment were sold at Rs. 9,000. An old typewriter not recorded in the books was taken over by Bharat for Rs. 600. Realisation expenses amounted to Rs. 2,000. Bank A/c is credited by the Realisation A/c by ___ amount in total. Option 1: Rs 20,000 Option 2: Rs 75,620 Option 3: Rs 97,620 Option 4: Rs 95,620

Answer: Rs 97,620. Solution: Calculating Total Cash Payments (Credit to Bank A/c) In the dissolution of a partnership firm, the Bank Account is credited when the firm makes actual cash payments to settle outside liabilities or pay for realization expenses. We determine this by analyzing the adjustments provided in the problem. Here is the step-by-step calculation of all cash outflows: 1. Settlement of Creditors * The balance sheet shows Creditors at a book value of ₹76,000. * The adjustments state they were paid at a discount of ₹380. * Amount Paid = ₹76,000 - ₹380 = ₹75,620 2. Payment of Realisation Expenses * The problem explicitly states that realization expenses were incurred. * Amount Paid = ₹2,000 3. Settlement of Mrs. Bharat's Loan (Crucial Hidden Adjustment) * The balance sheet lists Mrs. Bharat's Loan at ₹20,000. * Note on NCERT Rules: A partner's spouse's loan is considered an outside/third-party liability. While partner Ashwani agreed to personally take over his wife's loan (meaning no cash left the firm for it), there is no information given about the settlement of Mrs. Bharat's loan. According to standard accounting principles, if a problem is silent regarding the settlement of an outside liability, the firm must pay it off in full. * Amount Paid = ₹20,000 Total Amount Credited to Bank A/c: To find the total, simply add all the cash payments together: * Total Payment = Creditors + Expenses + Mrs. Bharat's Loan * Total Payment = ₹75,620 + ₹2,000 + ₹20,000 = ₹97,620 Correct Answer: The Bank A/c is credited by the Realisation A/c by Rs. 97,620 in total.

Partnership

Dissolution

Hard

Comprehension

From the information provided below, calculate various questions asked in questions

Following is the Balance Sheet of Ashwani and Bharat on March 31, 2024.

Balance Sheet Ashwani and Bharat as on March 31, 2024

Liabilities	Amount ( $₹$ )	Assets	Amount ( $₹$ )
Creditors	$76,000$	Cash at bank	$17,000$
Mrs.Ashwani's loan	$10,000$	Stock	$10,000$
Mrs.Bharat loan	$20,000$	Investments	$20,000$
Investment fluctuation reserve	$2,000$	Debtors $\quad 40,000$ Less: Provision for doubtful debts $\quad 4,000$	$36,000$
General Reserve	$20,000$	Buildings	$70,000$
Capitals: Ashwani $20,000$ Bharat $20,000$	$40,000$	Goodwill	$15,000$
Total	$1,68,000$	Total	$1,68,000$

The firm was dissolved on that date. The following was agreed transactions took place:

Ashwani promised to pay Mrs. Ashwani’s loan and took away stock for Rs. 8,000.
Bharat took away half of the investment at 10% less. Debtors realised for Rs. 38,000. Creditor’s were paid at less of Rs. 380. Buildings realised for Rs. 1,30,000. Goodwill Rs. 12,000 and the remaining Investment were sold at Rs. 9,000. An old typewriter not recorded in the books was taken over by Bharat for Rs. 600. Realisation expenses amounted to Rs. 2,000.

Bank A/c is credited by the Realisation A/c by _______ amount in total.

Rs 20,000

Rs 75,620

Rs 97,620

Rs 95,620

✅ Correct Option: 3

Calculating Total Cash Payments (Credit to Bank A/c)

In the dissolution of a partnership firm, the Bank Account is credited when the firm makes actual cash payments to settle outside liabilities or pay for realization expenses. We determine this by analyzing the adjustments provided in the problem.

Here is the step-by-step calculation of all cash outflows:

1. Settlement of Creditors

The balance sheet shows Creditors at a book value of ₹76,000.
The adjustments state they were paid at a discount of ₹380.
Amount Paid = ₹76,000 - ₹380 = ₹75,620

2. Payment of Realisation Expenses

The problem explicitly states that realization expenses were incurred.
Amount Paid = ₹2,000

3. Settlement of Mrs. Bharat's Loan (Crucial Hidden Adjustment)

The balance sheet lists Mrs. Bharat's Loan at ₹20,000.
Note on NCERT Rules: A partner's spouse's loan is considered an outside/third-party liability. While partner Ashwani agreed to personally take over his wife's loan (meaning no cash left the firm for it), there is no information given about the settlement of Mrs. Bharat's loan. According to standard accounting principles, if a problem is silent regarding the settlement of an outside liability, the firm must pay it off in full.
Amount Paid = ₹20,000

Total Amount Credited to Bank A/c:

To find the total, simply add all the cash payments together:

Total Payment = Creditors + Expenses + Mrs. Bharat's Loan
Total Payment = ₹75,620 + ₹2,000 + ₹20,000 = ₹97,620

Correct Answer:

The Bank A/c is credited by the Realisation A/c by Rs. 97,620 in total.

2025: 2 June Shift 2

On the happening of certain contingencies, Subject to contract between the partners, a firm is dissolved ,

(A) if constituted for a fixed term, by the expiry of that term.

(B) if constituted to carry out one or more ventures, by the completion thereof.

(D) by the adjudication of a partner as an insolvent

Choose the correct answer from the options given below:

2026: 31 May Shift 1

On dissolution of a firm, creditors are transferred to:

2022: 23 Aug Shift 2

On dissolution of a firm, bank overdraft is transferred to :

2025: 29 May Shift 2

According to which section of the partnership Act 1932, the dissolution of a partnership between all the partners of a firm is called the dissolution of the firm?

2025: 4 June Shift 2

At the time of dissolution, when creditor accepts an asset whose value is much more than the amount due to him, he will _________ the excess amount which will be credited to _________ account?

2025: 30 May Shift 1

A firm is dissolved compulsorily in the following cases:

(A) When all the partners or all but one partner, become insolvent, rendering them incompetent to sign a contract.

(B) When the business of the firm becomes illegal

(D) When some event has taken place which makes it unlawful for the partners to carry on the business of the firm in partnership.

Choose the correct answer from the options given below:

Comprehension

Balance Sheet Ashwani and Bharat as on March 31, 2024

Bank A/c is credited by the Realisation A/c by _______ amount in total.

Solution

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