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At the time of dissolution of a firm, Creditors are ₹ 70,000; Firm’s Capital is ₹ 1,20,000; Cash Balance is ₹ 10,000….

Class 12th Accountancy , Question - At the time of dissolution of a firm, Creditors are ₹ 70,000; Firm’s Capital is ₹ 1,20,000; Cash Balance is ₹ 10,000. Other assets realized ₹ 1,50,000. Gain/Loss in the realization account will be:

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February 27, 2023

These are the options for the Question : At the time of dissolution of a firm, Creditors are ₹ 70,000; Firm’s Capital is ₹ 1,20,000; Cash Balance is ₹ 10,000. Other assets realized ₹ 1,50,000. Gain/Loss in the realization account will be:

a) ₹ 30,000 (Gain)
b) ₹ 40,000 (Gain)
c) ₹ 40,000 (Loss)
d) ₹ 30,000 (Loss)

The correct answer is – d) ₹ 30,000 (loss)