Question

Divya & Shweta are equal partners. When partnership is dissolved, their capitals are Rs. 30,000 and Rs. 40,000 respectively. After all assets are sold and liabilities paid, there is a cash balance of Rs. 60,000. What is the amount of profit or loss on realization?

• A. Rs. 10,000 (profit)
• B. Rs. 20,000 (profit)
• C. Rs. 30,000 (profit)
• D. Rs. 10,000 (loss)

Answer 1

The correct option is D Rs. 10,000 (loss)

Divya's Capital - 30,000

Sweta's Capital - 40,000

Total - 70,000

cash balance - 60,000

Loss = total capital- cash available= 70,000 - 60,000 = 10,000

10,000 will be taken as loss on realization.

thus Bank Account Particulars are:

particulars	Amount	particulars	Amount
To balance b/d	60000	By Divya's Capital A/C	30000
To loss on realization ( Remaining balance)	10000	By Sweta's Capital A/C	40000
Total	70000	Total	70000