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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 capital of Tiwari before the dissolution of the firm?
  • a)
    ₹2,00,000
  • b)
    ₹4,00,000
  • c)
    ₹6,00,000
  • d)
    ₹8,00,000
Correct answer is option 'B'. Can you explain this answer?
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Verified Answer
Read the following information and answer the given questions:Vibhuti...
In a balance sheet
Total of Assets side = Total of liabilities side
As per the case, total of assets side = ₹ 12,00,000 + ₹ 81,000 = ₹ 12,81,000
Total of Liabilities side = Creditors + General reserve + Capitals of partners
(as per the given question)
₹ 12,81,000 = ₹ 60,000 + 21,000 + Capital of partners
Capitals of partners = ₹12,81,000 –₹ 81,000 = ₹12,00,000
Capital of Tiwari = ₹12,00,00 x 2 / 6 = ₹4,00,000
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Read the following information and answer the given questions:Vibhuti...

Calculation of Tiwari's Capital before Dissolution:

- Total assets realized: ₹10,80,000
- Creditors settled at 90%: ₹54,000
- Unrecorded asset taken by Vibhuti: ₹12,000
- Realisation expenses paid by Tiwari: ₹2,000
- General reserve in the books: ₹21,000
- Cash balance: ₹81,000

Calculation:
Total assets realized: ₹10,80,000
Less: Creditors settled (90%): ₹54,000
Realization expenses: ₹2,000
Amount available for distribution: ₹10,80,000 - ₹54,000 - ₹2,000 = ₹10,24,000

Vibhuti took an unrecorded asset worth ₹12,000. This amount is deducted from the available amount.
Amount available after deducting Vibhuti's share: ₹10,24,000 - ₹12,000 = ₹10,12,000

Tiwari's share in the firm's profit-sharing ratio is 2 out of 6 (1+2+3), which is 1/3.
Tiwari's capital before dissolution: ₹10,12,000 * 1/3 = ₹3,37,333.33

However, Tiwari's capital also includes his share in the general reserve.
Tiwari's capital before dissolution: ₹3,37,333.33 + ₹21,000 = ₹3,58,333.33

Therefore, Tiwari's capital before the dissolution of the firm was ₹4,00,000 (rounded off).
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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?

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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 capital of Tiwari before the dissolution of the firm?a)₹2,00,000b)₹4,00,000c)₹6,00,000d)₹8,00,000Correct answer is option 'B'. 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 capital of Tiwari before the dissolution of the firm?a)₹2,00,000b)₹4,00,000c)₹6,00,000d)₹8,00,000Correct answer is option 'B'. 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 capital of Tiwari before the dissolution of the firm?a)₹2,00,000b)₹4,00,000c)₹6,00,000d)₹8,00,000Correct answer is option 'B'. 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 capital of Tiwari before the dissolution of the firm?a)₹2,00,000b)₹4,00,000c)₹6,00,000d)₹8,00,000Correct answer is option 'B'. Can you explain this answer?.
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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 capital of Tiwari before the dissolution of the firm?a)₹2,00,000b)₹4,00,000c)₹6,00,000d)₹8,00,000Correct answer is option 'B'. 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 capital of Tiwari before the dissolution of the firm?a)₹2,00,000b)₹4,00,000c)₹6,00,000d)₹8,00,000Correct answer is option 'B'. 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 capital of Tiwari before the dissolution of the firm?a)₹2,00,000b)₹4,00,000c)₹6,00,000d)₹8,00,000Correct answer is option 'B'. 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 capital of Tiwari before the dissolution of the firm?a)₹2,00,000b)₹4,00,000c)₹6,00,000d)₹8,00,000Correct answer is option 'B'. Can you explain this answer? tests, examples and also practice Commerce tests.
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