Question

Sundry Assets were of ₹ 1,17,000. Y is to take some Sundry Assets at ₹ 72,000 (being 10% less than the book value). Z is to take remaining sundry assets at 80% of the book value. Realisation Account is to be credited with ______.

विकल्प

• ₹ 1,01,600

• ₹ 1,08,000

• ₹ 72,000

• None of these.

Answer 1

Sundry Assets were of ₹ 1,17,000. Y is to take some Sundry Assets at ₹ 72,000 (being 10% less than the book value). Z is to take remaining sundry assets at 80% of the book value. Realisation Account is to be credited with ₹ 1,01,600.

Explanation:

Y took some assets for ₹ 72,000, which is 10% less than their book value (meaning it is 90% of the book value).

Book Value of Y’s Assets = `(72,000)/(90%)`

= ₹ 80,000

Find the remaining book value for Z:

Remaining Book Value = Total Assets − Book Value of Y’s Assets

Remaining Book Value = 1,17,000 − 80,000

= ₹ 37,000

Z takes them at 80% of this remaining book value.

Z’s Takeover Value = `37,000 xx 80/100`

= ₹ 29,600

The total amount credited is the sum of what both partners took over.

Total Credited = Y’s Value + Z’s Value

= 72,000 + 29,600

= ₹ 1,01,600