Question

A, B and C are equal partners. After selling all assets, paying all liabilities and dividing the loss on realization, capital balances are A - Rs. 5,000 (Cr.), B - Rs. 2,000 (Cr.), and C - Rs. 2,000 (Dr.). What is the amount of cash in hand ?

• A. Rs. 9,000
• B. Rs. 7,000
• C. Rs. 5,000
• D. Rs. 1,000

Answer 1

Answer: (C)

Rs. 5,000

A, B has credit Balance while C has debit balance

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

BANK ACCOUNT

Particulars	Amount	particulars	Amount
To C's Capital A/C	2000	By A's Capital A/C	5000
To balance b/d (remaining Balance)	5000	By B's Capital A/C	2000
Total:	7000	Total	7000