Question

Avaya, Mitansh and Praveen were partners in a firm. On 31st March, 2023, the firm was dissolved. Creditors took over furniture of book value of ₹ 50,000 at ₹ 45,000 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 ______.

Options

• ₹ 10,000

• ₹ 50,000

• ₹ 45,000

• ₹ 15,000

Answer 1

Avaya, Mitansh and Praveen were partners in a firm. On 31st March, 2023, the firm was dissolved. Creditors took over furniture of book value of ₹ 50,000 at ₹ 45,000 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 ₹ 15,000.

Explanation:

Total Debt Owed to Creditors = ₹ 60,000

Value of Furniture Accepted (Agreed Value) = ₹ 45,000

Balance Paid via Cheque = Total Debt − Agreed Value of Asset

= 60,000 − 45,000

= ₹ 15,000