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Creditors having book value of ₹1,00,000 and furniture having book value of ₹70,000 were appearing in the Balance sheet of a partnership firm. On 31st
Question

Creditors having book value of ₹1,00,000 and furniture having book value of ₹70,000 were appearing in the Balance sheet of a partnership firm. On 31st March, 2022 the firm was dissolved and creditors decided to take over furniture at 80% of book value and balance were settled at 10% discount. Identify the correct option on the basis of above information.

A.

Creditors will be paid at ₹44,000

B.

Creditors will be paid at ₹39,600

C.

Creditors will be paid at ₹95,000

D.

Creditors will be paid at ₹1,00,000

Correct option is B

Value of Furniture Taken over by creditors = ₹70,000×80%=₹56,000
Amount of Creditors Left = ₹1,00,000-₹56,000=₹44,000
Balance Creditors paid= ₹44,000×90/100=₹39,600

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