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Pawan, Kavita and Gaurav were partners in a firm. The firm was dissolved. Creditors took over furniture of book value of ₹ 60,000 at 10% less than the book value in part settlement of their amount of ₹60,000. The balance amount was paid to them through cheque. The amount paid through cheque will be?
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Pawan, Kavita and Gaurav were partners in a firm. The firm was dissolv...
Understanding the Situation
In the dissolution of a firm, partners need to settle the accounts with the creditors. In this case, the creditors took over the furniture, and its book value is ₹ 60,000.
Calculation of Furniture Value Taken by Creditors
- Book Value of Furniture: ₹ 60,000
- Discount Given to Creditors: 10%
The value at which the creditors took the furniture is calculated as follows:
- Value Taken = Book Value - (10% of Book Value)
- Value Taken = ₹ 60,000 - (0.10 × ₹ 60,000)
- Value Taken = ₹ 60,000 - ₹ 6,000
- Value Taken = ₹ 54,000
Settlement of Creditors' Amount
The total amount owed to creditors is ₹ 60,000. Since they received furniture worth ₹ 54,000, the remaining balance will be settled through a cheque.
Balance Amount to be Paid Through Cheque
- Total Amount Owed to Creditors: ₹ 60,000
- Amount Settled with Furniture: ₹ 54,000
To find the amount to be paid through cheque:
- Amount Paid Through Cheque = Total Amount Owed - Amount Settled
- Amount Paid Through Cheque = ₹ 60,000 - ₹ 54,000
- Amount Paid Through Cheque = ₹ 6,000
Conclusion
The amount paid through cheque to the creditors, after settling with the furniture, will be ₹ 6,000. This final payment ensures that the creditors are fully compensated for the amount owed to them by the firm.
In the dissolution of a firm, partners need to settle the accounts with the creditors. In this case, the creditors took over the furniture, and its book value is ₹ 60,000.
Calculation of Furniture Value Taken by Creditors
- Book Value of Furniture: ₹ 60,000
- Discount Given to Creditors: 10%
The value at which the creditors took the furniture is calculated as follows:
- Value Taken = Book Value - (10% of Book Value)
- Value Taken = ₹ 60,000 - (0.10 × ₹ 60,000)
- Value Taken = ₹ 60,000 - ₹ 6,000
- Value Taken = ₹ 54,000
Settlement of Creditors' Amount
The total amount owed to creditors is ₹ 60,000. Since they received furniture worth ₹ 54,000, the remaining balance will be settled through a cheque.
Balance Amount to be Paid Through Cheque
- Total Amount Owed to Creditors: ₹ 60,000
- Amount Settled with Furniture: ₹ 54,000
To find the amount to be paid through cheque:
- Amount Paid Through Cheque = Total Amount Owed - Amount Settled
- Amount Paid Through Cheque = ₹ 60,000 - ₹ 54,000
- Amount Paid Through Cheque = ₹ 6,000
Conclusion
The amount paid through cheque to the creditors, after settling with the furniture, will be ₹ 6,000. This final payment ensures that the creditors are fully compensated for the amount owed to them by the firm.
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Pawan, Kavita and Gaurav were partners in a firm. The firm was dissolved. Creditors took over furniture of book value of ₹ 60,000 at 10% less than the book value in part settlement of their amount of ₹60,000. The balance amount was paid to them through cheque. The amount paid through cheque will be?
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Pawan, Kavita and Gaurav were partners in a firm. The firm was dissolved. Creditors took over furniture of book value of ₹ 60,000 at 10% less than the book value in part settlement of their amount of ₹60,000. The balance amount was paid to them through cheque. The amount paid through cheque will be? for UPSC 2025 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about Pawan, Kavita and Gaurav were partners in a firm. The firm was dissolved. Creditors took over furniture of book value of ₹ 60,000 at 10% less than the book value in part settlement of their amount of ₹60,000. The balance amount was paid to them through cheque. The amount paid through cheque will be? covers all topics & solutions for UPSC 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Pawan, Kavita and Gaurav were partners in a firm. The firm was dissolved. Creditors took over furniture of book value of ₹ 60,000 at 10% less than the book value in part settlement of their amount of ₹60,000. The balance amount was paid to them through cheque. The amount paid through cheque will be?.
Pawan, Kavita and Gaurav were partners in a firm. The firm was dissolved. Creditors took over furniture of book value of ₹ 60,000 at 10% less than the book value in part settlement of their amount of ₹60,000. The balance amount was paid to them through cheque. The amount paid through cheque will be? for UPSC 2025 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about Pawan, Kavita and Gaurav were partners in a firm. The firm was dissolved. Creditors took over furniture of book value of ₹ 60,000 at 10% less than the book value in part settlement of their amount of ₹60,000. The balance amount was paid to them through cheque. The amount paid through cheque will be? covers all topics & solutions for UPSC 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Pawan, Kavita and Gaurav were partners in a firm. The firm was dissolved. Creditors took over furniture of book value of ₹ 60,000 at 10% less than the book value in part settlement of their amount of ₹60,000. The balance amount was paid to them through cheque. The amount paid through cheque will be?.
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