Question

The following condensed balance sheet is for the partnership of Adel, Bahi, and Rani, who share profits and losses in the ratio of 4:3:3, respectively:

Assets Liabilities & Capital

Cash $100,000 Liabilities $150,000

Other Assets 300,000 Adel, Capital 40,000

Bahi, Capital 180,000

Rani, Capital 30,000

Total Assets $400,000 Total Liabilities & Capital $400,000

The partners agreed to dissolve the partnership after selling the other assets for $180,000. On dissolution of the partnership, B should receive

Select one:

a. $0.

b. $130,000.

c. $40,000.

d. $60,000.

Answer 1

For calculation of this sum we need to prepare the following A/c

Realisation A/c

Particulars Amount Particulars Amount

Assets 300000 Liabilities 150000

Cash(Liability

Realised) 150000 Cash(Assets

Realised) 180000

Loss on

Realization 120000

A:48000

B:36000   

R:36000

Total 450000 Total 450000

Partners Capital A/c

Particulars A B R Particulars A B R

loss

(Realization) 48K$ 36K$ 36K$ Balance B/f 40K$ 180K$ 30K

Balance c/f - 144K$ - Current A/c 8K$ 6K$

Total 48K$ 180K$ 36k$ Total 48k$ 180K$ 36k

B should Receive on the date of dissolution

B's Capital 144000$

Less: A's current A/c(debit balance) 8000$

Less:R's current A/c (debit balance) 6000$

B'S Receivable Amount 130000$

Conclusion:The Answer is Option b. $130000

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