Comprehension Passage
Following is the Balance Sheet of Ashwani and Bharat on March 31, 2017:
Balance Sheet Ashwani and Bharat as on March 31, 2017
| Liabilities | Amount (Rs.) |
|---|---|
| Creditors | 76,000 |
| Mrs. Ashwani's loan | 10,000 |
| Mrs. Bharat loan | 20,000 |
| Investment fluctuation reserve | 2,000 |
| General Reserve | 20,000 |
| Capitals: | |
| Ashwani | 20,000 |
| Bharat | 40,000 |
| Total | 1,68,000 |
| Assets | Amount (Rs.) |
|---|---|
| Cash at bank | 17,000 |
| Stock | 10,000 |
| Investments | 20,000 |
| Debtors | 40,000 |
| Less: Provision for doubtful debts | 4,000 |
| Buildings | 36,000 |
| Goodwill | 70,000 |
| Total | 1,68,000 |
The firm was dissolved on that date. The following was agreed transactions took place:
(i) Ashwani promised to pay Mrs. Ashwani's loan and took away stock for Rs. 8,000.
(ii) Bharat took away half of the investment at 10% less. Debtors realised for Rs. 38,000. Creditor's were paid at less of Rs. 38,300. Buildings realised for Rs. 1,30,000. Goodwill Rs. 12,000 and the remaining investment were sold at Rs. 9,000. An old typewriter not recorded in the books was taken over by Bharat for Rs. 600. Realisation amounted to Rs. 2,000.
Which of the following best describes the nature of the transaction when Ashwani took away stock worth Rs. 8,000 as per the dissolution agreement
1
Payment of liability
2
Settlement of asset value
3
Adjustment of capital contribution
4
Transfer of goodwill