Question

On the dissolution of the partnership firm of Gauri and Gaurav, Building appeared in the books at ₹ 21,00,000. One-third of the Building was taken by Gaurav at 20% discount and the remaining was sold at 10% profit. The value at which the Building was taken over by Gaurav was ______.

Options

• ₹ 15,40,000

• ₹ 1,00,000

• ₹ 5,60,000

• ₹ 7,00,000

Answer 1

On the dissolution of the partnership firm of Gauri and Gaurav, Building appeared in the books at ₹ 21,00,000. One-third of the Building was taken by Gaurav at 20% discount and the remaining was sold at 10% profit. The value at which the Building was taken over by Gaurav was ₹ 5,60,000.

Explanation:

Total Book Value of Building = ₹ 21,00,000

Gaurav’s Share = `1/3 xx 21,00,000`

= ₹ 7,00,000

Discount = `7,00,000 xx 20/100`

= ₹ 1,40,000

Takeover Value = ₹ 7,00,000 − ₹ 1,40,000

= ₹ 5,60,000