Question

On the basis of the following data how much final payment will be made to a partner on a firm dissolution? The credit balance of the capital account of the partner was Rs. 50,000. share of loss on realisation amounted to Rs. 10000. Firm liability taken over by him was for Rs. 8,000.

(a) 32,000
(b) 48,000
(c) 40,000
(d)52,000​

Answer 1

The final payment to the partner upon firm dissolution, after adjusting for the share of loss on realisation and liabilities taken over, is Rs. 32,000. This is calculated by subtracting the loss and liabilities from the capital account credit balance. The correct option is a.

Step-by-step explanation:

To determine the final payment to a partner upon firm dissolution, we start with the credit balance of the capital account. We then adjust this balance for any shares of loss on realisation and for any liabilities taken over by the partner.

The calculation is as follows:

• Credit balance of capital account: Rs. 50,000
• Less: Share of loss on realisation: Rs. 10,000
• Less: Liabilities taken over by the partner: Rs. 8,000

Therefore, the final payment made to the partner would be Rs. 50,000 - Rs. 10,000 - Rs. 8,000 = Rs. 32,000.

The correct answer is (a) Rs. 32,000.