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Read the following information and answer the given questions:
Vibhuti, Tiwari and Happu were partners in a partnership firm sharing profits and losses in their capital ratio, i.e., 1 : 2 : 3. On 31st March 2020, they decided to dissolve the partnership firm. The following information is given to you on the dissolution of the firm: The firm had total assets of ₹ 12,00,000 that realized ₹ 10,80,000. The creditors were settled at 90% by paying them ₹54,000. There was an unrecorded asset in the books of the firm which was taken by Vibhuti for ₹ 12,000. Realisation expenses amounted to ₹ 2,000 and were paid by Tiwari on behalf of the firm. There was a general reserve in the books of the company of ₹ 21,000. The capitals of the partners were in the proportion of their profit sharing ratio. Their balance sheet also showed a cash balance of ₹ 81,000.
Q. What was the loss on realization?
- a)₹2,00,000
- b)₹1,47,000
- c)₹1,37,000
- d)₹1,16,000
Correct answer is option 'D'. Can you explain this answer?
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Calculation of Loss on Realization
Total assets of the firm = ₹ 12,00,000
Realization value of assets = ₹ 10,80,000
Loss on realization = Total assets - Realization value of assets
Loss on realization = ₹ 12,00,000 - ₹ 10,80,000
Loss on realization = ₹ 1,20,000
Adjustments for Loss on Realization
Creditor's payment
Creditors settled at 90% = ₹ 54,000
Actual creditor's amount = (₹ 54,000 ÷ 90%) = ₹ 60,000
Loss on realization = ₹ 1,20,000
Less: Creditor's payment = (₹ 60,000 × 90%) = ₹ 54,000
Balance loss on realization = ₹ 66,000
Unrecorded asset
Value of unrecorded asset taken by Vibhuti = ₹ 12,000
Loss on realization = ₹ 66,000
Add: Value of unrecorded asset = ₹ 12,000
Balance loss on realization = ₹ 78,000
Realization expenses
Realization expenses paid by Tiwari = ₹ 2,000
Loss on realization = ₹ 78,000
Add: Realization expenses = ₹ 2,000
Balance loss on realization = ₹ 80,000
General reserve
General reserve in the books of the company = ₹ 21,000
Loss on realization = ₹ 80,000
Less: General reserve = ₹ 21,000
Balance loss on realization = ₹ 59,000
Distribution of Loss on Realization
Total loss on realization = ₹ 59,000
Capital ratio of Vibhuti, Tiwari and Happu = 1 : 2 : 3
Total capital of the partners = Capital ratio × Total loss on realization
Total capital of the partners = (1+2+3) × ₹ 59,000
Total capital of the partners = ₹ 3,54,000
Vibhuti's capital = (1/6) × ₹ 3,54,000 = ₹ 59,000
Tiwari's capital = (2/6) × ₹ 3,54,000 = ₹ 1,18,000
Happu's capital = (3/6) × ₹ 3,54,000 = ₹ 1,77,000
Therefore, the loss on realization was ₹ 1,16,000 (option D).
Total assets of the firm = ₹ 12,00,000
Realization value of assets = ₹ 10,80,000
Loss on realization = Total assets - Realization value of assets
Loss on realization = ₹ 12,00,000 - ₹ 10,80,000
Loss on realization = ₹ 1,20,000
Adjustments for Loss on Realization
Creditor's payment
Creditors settled at 90% = ₹ 54,000
Actual creditor's amount = (₹ 54,000 ÷ 90%) = ₹ 60,000
Loss on realization = ₹ 1,20,000
Less: Creditor's payment = (₹ 60,000 × 90%) = ₹ 54,000
Balance loss on realization = ₹ 66,000
Unrecorded asset
Value of unrecorded asset taken by Vibhuti = ₹ 12,000
Loss on realization = ₹ 66,000
Add: Value of unrecorded asset = ₹ 12,000
Balance loss on realization = ₹ 78,000
Realization expenses
Realization expenses paid by Tiwari = ₹ 2,000
Loss on realization = ₹ 78,000
Add: Realization expenses = ₹ 2,000
Balance loss on realization = ₹ 80,000
General reserve
General reserve in the books of the company = ₹ 21,000
Loss on realization = ₹ 80,000
Less: General reserve = ₹ 21,000
Balance loss on realization = ₹ 59,000
Distribution of Loss on Realization
Total loss on realization = ₹ 59,000
Capital ratio of Vibhuti, Tiwari and Happu = 1 : 2 : 3
Total capital of the partners = Capital ratio × Total loss on realization
Total capital of the partners = (1+2+3) × ₹ 59,000
Total capital of the partners = ₹ 3,54,000
Vibhuti's capital = (1/6) × ₹ 3,54,000 = ₹ 59,000
Tiwari's capital = (2/6) × ₹ 3,54,000 = ₹ 1,18,000
Happu's capital = (3/6) × ₹ 3,54,000 = ₹ 1,77,000
Therefore, the loss on realization was ₹ 1,16,000 (option D).
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Read the following information and answer the given questions:Vibhuti, Tiwari and Happu were partners in a partnership firm sharing profits and losses in their capital ratio, i.e., 1 : 2 : 3. On 31st March 2020, they decided to dissolve the partnership firm. The following information is given to you on the dissolution of the firm: The firm had total assets of ₹ 12,00,000 that realized ₹ 10,80,000. The creditors were settled at 90% by paying them ₹54,000. There was an unrecorded asset in the books of the firm which was taken by Vibhuti for ₹ 12,000. Realisation expenses amounted to ₹ 2,000 and were paid by Tiwari on behalf of the firm. There was a general reserve in the books of the company of ₹ 21,000. The capitals of the partners were in the proportion of their profit sharing ratio. Their balance sheet also showed a cash balance of ₹ 81,000.Q. What was the loss on realization?a)₹2,00,000b)₹1,47,000c)₹1,37,000d)₹1,16,000Correct answer is option 'D'. Can you explain this answer?
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Read the following information and answer the given questions:Vibhuti, Tiwari and Happu were partners in a partnership firm sharing profits and losses in their capital ratio, i.e., 1 : 2 : 3. On 31st March 2020, they decided to dissolve the partnership firm. The following information is given to you on the dissolution of the firm: The firm had total assets of ₹ 12,00,000 that realized ₹ 10,80,000. The creditors were settled at 90% by paying them ₹54,000. There was an unrecorded asset in the books of the firm which was taken by Vibhuti for ₹ 12,000. Realisation expenses amounted to ₹ 2,000 and were paid by Tiwari on behalf of the firm. There was a general reserve in the books of the company of ₹ 21,000. The capitals of the partners were in the proportion of their profit sharing ratio. Their balance sheet also showed a cash balance of ₹ 81,000.Q. What was the loss on realization?a)₹2,00,000b)₹1,47,000c)₹1,37,000d)₹1,16,000Correct answer is option 'D'. Can you explain this answer? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Read the following information and answer the given questions:Vibhuti, Tiwari and Happu were partners in a partnership firm sharing profits and losses in their capital ratio, i.e., 1 : 2 : 3. On 31st March 2020, they decided to dissolve the partnership firm. The following information is given to you on the dissolution of the firm: The firm had total assets of ₹ 12,00,000 that realized ₹ 10,80,000. The creditors were settled at 90% by paying them ₹54,000. There was an unrecorded asset in the books of the firm which was taken by Vibhuti for ₹ 12,000. Realisation expenses amounted to ₹ 2,000 and were paid by Tiwari on behalf of the firm. There was a general reserve in the books of the company of ₹ 21,000. The capitals of the partners were in the proportion of their profit sharing ratio. Their balance sheet also showed a cash balance of ₹ 81,000.Q. What was the loss on realization?a)₹2,00,000b)₹1,47,000c)₹1,37,000d)₹1,16,000Correct answer is option 'D'. Can you explain this answer? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Read the following information and answer the given questions:Vibhuti, Tiwari and Happu were partners in a partnership firm sharing profits and losses in their capital ratio, i.e., 1 : 2 : 3. On 31st March 2020, they decided to dissolve the partnership firm. The following information is given to you on the dissolution of the firm: The firm had total assets of ₹ 12,00,000 that realized ₹ 10,80,000. The creditors were settled at 90% by paying them ₹54,000. There was an unrecorded asset in the books of the firm which was taken by Vibhuti for ₹ 12,000. Realisation expenses amounted to ₹ 2,000 and were paid by Tiwari on behalf of the firm. There was a general reserve in the books of the company of ₹ 21,000. The capitals of the partners were in the proportion of their profit sharing ratio. Their balance sheet also showed a cash balance of ₹ 81,000.Q. What was the loss on realization?a)₹2,00,000b)₹1,47,000c)₹1,37,000d)₹1,16,000Correct answer is option 'D'. Can you explain this answer?.
Read the following information and answer the given questions:Vibhuti, Tiwari and Happu were partners in a partnership firm sharing profits and losses in their capital ratio, i.e., 1 : 2 : 3. On 31st March 2020, they decided to dissolve the partnership firm. The following information is given to you on the dissolution of the firm: The firm had total assets of ₹ 12,00,000 that realized ₹ 10,80,000. The creditors were settled at 90% by paying them ₹54,000. There was an unrecorded asset in the books of the firm which was taken by Vibhuti for ₹ 12,000. Realisation expenses amounted to ₹ 2,000 and were paid by Tiwari on behalf of the firm. There was a general reserve in the books of the company of ₹ 21,000. The capitals of the partners were in the proportion of their profit sharing ratio. Their balance sheet also showed a cash balance of ₹ 81,000.Q. What was the loss on realization?a)₹2,00,000b)₹1,47,000c)₹1,37,000d)₹1,16,000Correct answer is option 'D'. Can you explain this answer? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Read the following information and answer the given questions:Vibhuti, Tiwari and Happu were partners in a partnership firm sharing profits and losses in their capital ratio, i.e., 1 : 2 : 3. On 31st March 2020, they decided to dissolve the partnership firm. The following information is given to you on the dissolution of the firm: The firm had total assets of ₹ 12,00,000 that realized ₹ 10,80,000. The creditors were settled at 90% by paying them ₹54,000. There was an unrecorded asset in the books of the firm which was taken by Vibhuti for ₹ 12,000. Realisation expenses amounted to ₹ 2,000 and were paid by Tiwari on behalf of the firm. There was a general reserve in the books of the company of ₹ 21,000. The capitals of the partners were in the proportion of their profit sharing ratio. Their balance sheet also showed a cash balance of ₹ 81,000.Q. What was the loss on realization?a)₹2,00,000b)₹1,47,000c)₹1,37,000d)₹1,16,000Correct answer is option 'D'. Can you explain this answer? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Read the following information and answer the given questions:Vibhuti, Tiwari and Happu were partners in a partnership firm sharing profits and losses in their capital ratio, i.e., 1 : 2 : 3. On 31st March 2020, they decided to dissolve the partnership firm. The following information is given to you on the dissolution of the firm: The firm had total assets of ₹ 12,00,000 that realized ₹ 10,80,000. The creditors were settled at 90% by paying them ₹54,000. There was an unrecorded asset in the books of the firm which was taken by Vibhuti for ₹ 12,000. Realisation expenses amounted to ₹ 2,000 and were paid by Tiwari on behalf of the firm. There was a general reserve in the books of the company of ₹ 21,000. The capitals of the partners were in the proportion of their profit sharing ratio. Their balance sheet also showed a cash balance of ₹ 81,000.Q. What was the loss on realization?a)₹2,00,000b)₹1,47,000c)₹1,37,000d)₹1,16,000Correct answer is option 'D'. Can you explain this answer?.
Solutions for Read the following information and answer the given questions:Vibhuti, Tiwari and Happu were partners in a partnership firm sharing profits and losses in their capital ratio, i.e., 1 : 2 : 3. On 31st March 2020, they decided to dissolve the partnership firm. The following information is given to you on the dissolution of the firm: The firm had total assets of ₹ 12,00,000 that realized ₹ 10,80,000. The creditors were settled at 90% by paying them ₹54,000. There was an unrecorded asset in the books of the firm which was taken by Vibhuti for ₹ 12,000. Realisation expenses amounted to ₹ 2,000 and were paid by Tiwari on behalf of the firm. There was a general reserve in the books of the company of ₹ 21,000. The capitals of the partners were in the proportion of their profit sharing ratio. Their balance sheet also showed a cash balance of ₹ 81,000.Q. What was the loss on realization?a)₹2,00,000b)₹1,47,000c)₹1,37,000d)₹1,16,000Correct answer is option 'D'. Can you explain this answer? in English & in Hindi are available as part of our courses for Commerce.
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Read the following information and answer the given questions:Vibhuti, Tiwari and Happu were partners in a partnership firm sharing profits and losses in their capital ratio, i.e., 1 : 2 : 3. On 31st March 2020, they decided to dissolve the partnership firm. The following information is given to you on the dissolution of the firm: The firm had total assets of ₹ 12,00,000 that realized ₹ 10,80,000. The creditors were settled at 90% by paying them ₹54,000. There was an unrecorded asset in the books of the firm which was taken by Vibhuti for ₹ 12,000. Realisation expenses amounted to ₹ 2,000 and were paid by Tiwari on behalf of the firm. There was a general reserve in the books of the company of ₹ 21,000. The capitals of the partners were in the proportion of their profit sharing ratio. Their balance sheet also showed a cash balance of ₹ 81,000.Q. What was the loss on realization?a)₹2,00,000b)₹1,47,000c)₹1,37,000d)₹1,16,000Correct answer is option 'D'. Can you explain this answer?, a detailed solution for Read the following information and answer the given questions:Vibhuti, Tiwari and Happu were partners in a partnership firm sharing profits and losses in their capital ratio, i.e., 1 : 2 : 3. On 31st March 2020, they decided to dissolve the partnership firm. The following information is given to you on the dissolution of the firm: The firm had total assets of ₹ 12,00,000 that realized ₹ 10,80,000. The creditors were settled at 90% by paying them ₹54,000. There was an unrecorded asset in the books of the firm which was taken by Vibhuti for ₹ 12,000. Realisation expenses amounted to ₹ 2,000 and were paid by Tiwari on behalf of the firm. There was a general reserve in the books of the company of ₹ 21,000. The capitals of the partners were in the proportion of their profit sharing ratio. Their balance sheet also showed a cash balance of ₹ 81,000.Q. What was the loss on realization?a)₹2,00,000b)₹1,47,000c)₹1,37,000d)₹1,16,000Correct answer is option 'D'. Can you explain this answer? has been provided alongside types of Read the following information and answer the given questions:Vibhuti, Tiwari and Happu were partners in a partnership firm sharing profits and losses in their capital ratio, i.e., 1 : 2 : 3. On 31st March 2020, they decided to dissolve the partnership firm. The following information is given to you on the dissolution of the firm: The firm had total assets of ₹ 12,00,000 that realized ₹ 10,80,000. The creditors were settled at 90% by paying them ₹54,000. There was an unrecorded asset in the books of the firm which was taken by Vibhuti for ₹ 12,000. Realisation expenses amounted to ₹ 2,000 and were paid by Tiwari on behalf of the firm. There was a general reserve in the books of the company of ₹ 21,000. The capitals of the partners were in the proportion of their profit sharing ratio. Their balance sheet also showed a cash balance of ₹ 81,000.Q. What was the loss on realization?a)₹2,00,000b)₹1,47,000c)₹1,37,000d)₹1,16,000Correct answer is option 'D'. Can you explain this answer? theory, EduRev gives you an
ample number of questions to practice Read the following information and answer the given questions:Vibhuti, Tiwari and Happu were partners in a partnership firm sharing profits and losses in their capital ratio, i.e., 1 : 2 : 3. On 31st March 2020, they decided to dissolve the partnership firm. The following information is given to you on the dissolution of the firm: The firm had total assets of ₹ 12,00,000 that realized ₹ 10,80,000. The creditors were settled at 90% by paying them ₹54,000. There was an unrecorded asset in the books of the firm which was taken by Vibhuti for ₹ 12,000. Realisation expenses amounted to ₹ 2,000 and were paid by Tiwari on behalf of the firm. There was a general reserve in the books of the company of ₹ 21,000. The capitals of the partners were in the proportion of their profit sharing ratio. Their balance sheet also showed a cash balance of ₹ 81,000.Q. What was the loss on realization?a)₹2,00,000b)₹1,47,000c)₹1,37,000d)₹1,16,000Correct answer is option 'D'. Can you explain this answer? tests, examples and also practice Commerce tests.
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