During dissolution of partnership firm asssets were rs 200000 and outside labilities were rs 50000. If assets realised 85% and expenses of dissolution paid were rs500 , profit and loss on realisation account will be rs what?
Answers
Answer:
200000
Explanation:
because it is very highest long number
Answer:
Rs 1,19,500
Explanation:
Realisation account is usually prepared at the time of dissolution of a partnership firm. The purpose behind preparation of realisation account being realised values of all the assets at which they are sold and the payable value of all the liabilities and expenses.
Such an account reveals the profit/loss on realisation, which is distributed/borne by partners in their profit sharing ratio.
In the given case, realisation profit can be computed as follows:
= Realisable value of all the assets - payable value of all liabilities and expenses
= 200000 × 85% - 50,000 - 500
= 170000 - 50000 - 500
= Rs 1,19,500
Thus, realisation profit is Rs 1,19,500
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