Question
The balance sheet of Mr. Ahmed and Mr. Bashir who shared profits and losses in the ratio of 3:2 is as follows on December 31,
The balance sheet of Mr. Ahmed and Mr. Bashir who shared profits and losses in the ratio of 3:2 is as follows on December 31, 2020:-
Balance Sheet of Mr. Ahammed and Mr. Bashir as on March 31, 2020
Liabilities | Amount (OMR) | Assets | Amount (OMR) |
Mr. Ahmed Capital | 32,500 | Cash and Bank | 40,500 |
Mr. Bashir Capital | 11,500 | Other stock | 7,500 |
Sundry creditors | 48,000 | Sundry debtors: 21500 Less: Provision for doubtful debts 500 | 21000 |
Reserve fund | 13,500 | Fixed assets | 36,500 |
| 105,500 |
| 105,500 |
The firm was dissolved on December 31, 2020 . Close the books of the firm with the following information:
I. Debtors realized at a discount of 5%,
II. Stock realized at OMR 7,000,
III. Fixed assets realized at OMR 42,000,
IV. Realization expenses of OMR 1,500,
V. Creditors are paid in full.
a. How much amount will be the balance of realization account? Credit balance of OMR 2,925Credit balance of OMR 1,755Debit balance of OMR 2,925None of the listed choices
b. How much amount will be transferred to Mr. Ahmed's Capital account? Debit balance of OMR 2,925None of the listed choicesCredit balance of OMR 2,925Credit balance of OMR 1,755
c. How much amount will be transferred to Mr. Bashir's Capital account?
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