Question

A, B and C are equal partners. After selling all assets , paying all liabilities and dividing profit on realisation, capital balance are A - Rs. 8,000 (Cr.), B - Rs. 5,000 (Dr.), and C - Rs. 1,000 (Dr.). What is the amount of cash in hand?

• A. Rs. 8,000
• B. Rs. 14,000
• C. Rs. 5,000
• D. Rs. 2,000

Answer 1

Answer: (D)

Rs. 2,000

A has credit Balance while B,C has debit balance

B,C will bring in the required amount to clear his debit balance

BANK ACCOUNT

Particulars	Amount	particulars	Amount
To B's Capital A/C	5000	By A's Capital A/C	8000
To C's Capital A/C	1000
To balance b/d (remaining Balance)	2000
Total:	8000	Total	8000