Question

Lata, Mehu and Namita were partners in a firm sharing profits and losses in the ratio of 3 : 2 : 1. They decided to dissolve the firm on 31st March, 2023. Creditors took over stock of book value of ₹ 80,000 at 80% in part settlement of their amount of ₹ 90,000. The balance amount was paid to the creditors by cheque. The amount paid by cheque to the creditors will be ______.

Options

• ₹ 26,000

• ₹ 64,000

• ₹ 80,000.

• ₹ 1,44,000

Answer 1

Lata, Mehu and Namita were partners in a firm sharing profits and losses in the ratio of 3 : 2 : 1. They decided to dissolve the firm on 31st March, 2023. Creditors took over stock of book value of ₹ 80,000 at 80% in part settlement of their amount of ₹ 90,000. The balance amount was paid to the creditors by cheque. The amount paid by cheque to the creditors will be ₹ 26,000.

Explanation:

Total Amount Due to Creditors = ₹ 90,000

Agreed Value = `80,000 xx 80/100`

= ₹ 64,000

Balance Paid via Cheque:

Final Payment = ₹ 90,000 − ₹ 64,000

= ₹ 26,000