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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 will be the final amount to be paid to Happu?
- a)₹6,05,000
- b)₹52,000
- c)₹5,52,500
- d)₹6,08,500
Correct answer is option 'C'. Can you explain this answer?
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Verified Answer
Read the following information and answer the given questions:Vibhuti...
Amount paid to Happu = Capital + Share in General Reserve – Loss on Realization = ₹ 6,00,000 + ₹ 10,500 – ₹ 58,000
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= ₹ 5,52,500
Most Upvoted Answer
Read the following information and answer the given questions:Vibhuti...
Calculation of the Final Amount to be paid to Happu:
The first step in calculating the final amount to be paid to Happu is to determine the total amount available for distribution after settling the liabilities of the firm.
1. Calculation of Total Realization Amount:
Total Assets of the firm = ₹12,00,000
Realization Amount = ₹10,80,000
2. Settlement of Creditors:
Creditors settled at 90% = ₹54,000
Remaining amount for distribution = Total Realization Amount - Creditors settled = ₹10,80,000 - ₹54,000 = ₹10,26,000
3. Unrecorded Asset taken by Vibhuti:
Unrecorded Asset taken by Vibhuti = ₹12,000
4. Realization Expenses:
Realization Expenses paid by Tiwari = ₹2,000
5. General Reserve in the books of the firm:
General Reserve = ₹21,000
6. Calculation of Final Amount to be paid to Happu:
Total amount available for distribution = Remaining amount for distribution - Unrecorded Asset - Realization Expenses - General Reserve
= ₹10,26,000 - ₹12,000 - ₹2,000 - ₹21,000
= ₹9,91,000
Happu's share in the profit sharing ratio = 3/6 (as per the capital ratio)
= 1/2
Final amount to be paid to Happu = ₹9,91,000 x 1/2
= ₹4,95,500
Therefore, the final amount to be paid to Happu is ₹5,52,500 (Option C).
The first step in calculating the final amount to be paid to Happu is to determine the total amount available for distribution after settling the liabilities of the firm.
1. Calculation of Total Realization Amount:
Total Assets of the firm = ₹12,00,000
Realization Amount = ₹10,80,000
2. Settlement of Creditors:
Creditors settled at 90% = ₹54,000
Remaining amount for distribution = Total Realization Amount - Creditors settled = ₹10,80,000 - ₹54,000 = ₹10,26,000
3. Unrecorded Asset taken by Vibhuti:
Unrecorded Asset taken by Vibhuti = ₹12,000
4. Realization Expenses:
Realization Expenses paid by Tiwari = ₹2,000
5. General Reserve in the books of the firm:
General Reserve = ₹21,000
6. Calculation of Final Amount to be paid to Happu:
Total amount available for distribution = Remaining amount for distribution - Unrecorded Asset - Realization Expenses - General Reserve
= ₹10,26,000 - ₹12,000 - ₹2,000 - ₹21,000
= ₹9,91,000
Happu's share in the profit sharing ratio = 3/6 (as per the capital ratio)
= 1/2
Final amount to be paid to Happu = ₹9,91,000 x 1/2
= ₹4,95,500
Therefore, the final amount to be paid to Happu is ₹5,52,500 (Option C).
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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 will be the final amount to be paid to Happu?a)₹6,05,000b)₹52,000c)₹5,52,500d)₹6,08,500Correct answer is option 'C'. Can you explain this answer?
Question Description
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 will be the final amount to be paid to Happu?a)₹6,05,000b)₹52,000c)₹5,52,500d)₹6,08,500Correct answer is option 'C'. 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 will be the final amount to be paid to Happu?a)₹6,05,000b)₹52,000c)₹5,52,500d)₹6,08,500Correct answer is option 'C'. 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 will be the final amount to be paid to Happu?a)₹6,05,000b)₹52,000c)₹5,52,500d)₹6,08,500Correct answer is option 'C'. 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 will be the final amount to be paid to Happu?a)₹6,05,000b)₹52,000c)₹5,52,500d)₹6,08,500Correct answer is option 'C'. 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 will be the final amount to be paid to Happu?a)₹6,05,000b)₹52,000c)₹5,52,500d)₹6,08,500Correct answer is option 'C'. 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 will be the final amount to be paid to Happu?a)₹6,05,000b)₹52,000c)₹5,52,500d)₹6,08,500Correct answer is option 'C'. 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 will be the final amount to be paid to Happu?a)₹6,05,000b)₹52,000c)₹5,52,500d)₹6,08,500Correct answer is option 'C'. 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 will be the final amount to be paid to Happu?a)₹6,05,000b)₹52,000c)₹5,52,500d)₹6,08,500Correct answer is option 'C'. 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 will be the final amount to be paid to Happu?a)₹6,05,000b)₹52,000c)₹5,52,500d)₹6,08,500Correct answer is option 'C'. 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 will be the final amount to be paid to Happu?a)₹6,05,000b)₹52,000c)₹5,52,500d)₹6,08,500Correct answer is option 'C'. 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 will be the final amount to be paid to Happu?a)₹6,05,000b)₹52,000c)₹5,52,500d)₹6,08,500Correct answer is option 'C'. Can you explain this answer? tests, examples and also practice Commerce tests.
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