Question

Q. 7. A, B and C were in partnership sharing profits in the ratio of 2:1:1. Their
Balance Sheet showed the following position on the date of dissolution :
50,000
60,000
Liabilities
Creditors
Bills Payable
A's Loan
Mrs. A's Loan
Workmen Compensation Reserve
Capitals :
30,000
2,000
Assets
40.000 Fixed Assets
10,000 Stock
20,000 Debtors
16,000 Less : Provision
20,000 Furniture
40,000 Goodwill
20,000 Cash at Bank
20,000
1,86,000
28.000
20.000
18,000
10,000
1,86,000
I. A agreed to take over furniture at 20% less than the book value.
II. Fixed assets realised 32,000 and stock 55,000.
III. Bad Debts amounted to 5,000.
IV. Expenses of realisation were 3,000. Creditors were paid at a discount of 5%.
V. There was a claim of 6,400 for damages against the firm. It had to be paid.
Prepare necessary accounts.​

Answer 1

Answer:

Suppose your father has just come from work and you offer him a glass of juice.The first glass of iuice will aive him great satisfaction.The satisfaction with the second glass of juice will be relatively lesser With further consumption, a stage will come, when he would not need any more glass of juice, ie.when the marginal utility drops to zero.After that point, if he is forced to consume even one more glass of luice, it will lead to disutility Such a decrease in satisfaction with consumption of successive units occurs due to Law of diminishing marginal utility