CBSE 2025, Set 3

Question

Niti and Riti were partners in a firm sharing profits and losses equally. Their firm was dissolved on 31st March, 2024. After transferring assets (other than cash) and external liabilities to Realisation A/c, the following transactions took place:
(i) All the assets (except unrecorded assets) were realised at a profit of ₹ 20,000.
(ii) All the liabilities were settled at ₹ 50,000.
(iii) An unrecorded asset was sold for ₹ 30,000.
(iv) Realisation expenses were ₹ 10,000.

The result of Realisation A/c was: A). ₹ 40,000 Profit B). ₹ 40,000 Loss C). ₹ 20,000 Loss D). ₹ 20,000 Profit

Edvaya · Accepted Answer

The correct answer is ₹ 40,000 Profit. (A) ₹ 40,000 Profit **Explanation:** Profit on recorded assets = +20,000. Profit from unrecorded asset = +30,000. Realisation expenses = -10,000. Liabilities settled at 50,000 (Assuming they were paid at book value unless stated otherwise, the net impact on P/L is 0). Net result = 20,000 + 30,000 - 10,000 = ₹ 40,000 Profit.

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Accountancy > Accounting For Partnership Firms > Dissolution Of Partnership Firm

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