Question

Sushil and Sapna were partners in a firm sharing profits and losses in the ratio of 3 : 2. On 31^st March, 2025, the firm was dissolved. On the date of dissolution there existed a balance of 1,20,000 in sundry creditors account. The sundry creditors were payable after three months. They were paid immediately at a discount of 12% p.a. The amount paid to sundry creditors was:

Options

• ₹ 1,20,000

• ₹ 1,23,600

• ₹ 1,16,400

• ₹ 1,34,400

Answer 1

₹ 1,16,400

Explanation:

1. Calculate the Discount Amount

The discount is calculated for the period the payment is advanced (3 months) at the given annual rate (12% p.a.).

Discount = Creditors Balance × Rate × `"Months"/12`

Discount = `1,20,000 xx 12/100 xx 3/12 = 3,600`

2. Calculate the Actual Amount Paid

Amount Paid = Creditors Balance − Discount

Amount Paid = 1,20,000 − 3,600 = 1,16,400