Question

22. At the end of the piecemeal distribution, Tiku's Capital account is 49,000 (credit balance) and Biku's Capital account is 63,000 (credit balance). The book value of the firm's fixed assets is 97,000, and they are sold for 85,000. Tiku and Biku share profits and losses equally. The final cash paid to Biku is
(a) 67,000 (b) * 65,000 0 63,000 (d) *49,500​

Answer 1

Answer:

The final cash paid to biku is a)67000

Answer 2

The correct answer is option (d) 49,500.

Explanation:

• The final cash paid to Biku is Rs. 49,500.
• In accounting, "Piecemeal Distribution" is a method wherein as and when money is received from sale of assets, it is used to pay liabilities in stages or gradually.
• For example, if partners decide to dissolve a firm on 31st March, the stock may be sold off in April, the debtors may be collected in May and the fixed assets may be sold by July.