Question

At the time of dissolution of a partnership firm, its Balance Sheet showed stock of ₹ 40,000 comprising of easily marketable items, obsolete items and a few miscellaneous other items. These items were realised as:

• Easily marketable items: 70% of the total inventory - in full.
• Obsolete items: 10% of the remaining inventory - discarded.
• The miscellaneous other items in the stock - 20% of their book value.

You are required to calculate the amount realised from the sale of stock.

Answer 1

Total stock value – ₹ 40,000 out of Total Stock

(a) Easily Marketable Items realised = `(40,000 xx 70)/100`

= 28,000 full realisation

Remaining stock = ₹ 40,000 – ₹ 28,000 = ₹ 12,000

(b) Obsolete item: 10% of ₹ 12,000 (1,200 B.V.) 

(c) The miscellaneous other items realised

= 12,000 – 1,200

= `10,800xx 20/100` 

= ₹ 2,160

Total realisation from stock:

= 28,000 + 2,160

= ₹ 30,160