Question
Accountancy Question on Reading Comprehension
Read the following case study and answer the question: Naina and Nayantara are Partners in a firm, sharing profits in ratio 3: 2. They decided to dissolve their firm on 31, March 2021 when their Balance-Sheet was as follows:
| Liabilities Amt. | Amt. (₹) | Assets | Amt. (₹) |
|---|---|---|---|
| Capital: | Machinery | 80,000 | |
| Naina 1,00,000 | Investment | 50,000 | |
| Nayantara 80,000 | 1,80,000 | Stock | 22,000 |
| Creditors | 60,000 | Debtors | 1,03,000 |
| Bills payable | 20,000 | Cash at Bank | 5000 |
| 2,60,000 | 2,60,000 | ||
| The Assets and liabilities were disposed off as follows: | |||
| (a) Machinery was given to creditors in full settlement of their amount and stock was given to Bills Payable in full settlement. | |||
| (b) Investment were taken over by Nayantara at book value. | |||
| (c) Debtors of book value ₹50,000 taken over by Naina at 10% less and remaining debtors realised ₹ 51,000. | |||
| (d) Realisation expenses amounted to ₹5,000. |