Comprehension Passage
Following is the Balance Sheet of Supriya and Monika as on March 31, 2020:
Balance Sheet of Supriya and Monika as on March 31, 2020
| Liabilities | Amount (Rs.) |
|---|---|
| Supriya's Capital | 32,500 |
| Monika's Capital | 11,500 |
| Sundry Creditors | 48,000 |
| General Reserve | 13,500 |
| Total | 1,05,500 |
| Assets | Amount (Rs.) |
|---|---|
| Cash and Bank | 40,500 |
| Stock | 7,500 |
| Sundry Debtors | 21,500 |
| Less: Provision for doubtful debts | 500 |
| Fixed Assets | 36,500 |
| Total | 1,05,500 |
The firm was dissolved on March 31, 2020. Close the books of the firm with the following information:
(i) Debtors realised at a discount of 5%,
(ii) Stock realised at Rs.7,000,
(iii) Fixed assets realised at Rs.42,000,
(iv) Realisation expenses of Rs.1,500,
(v) Creditors are paid in full.
After the dissolution of the firm, the realisation of Rs. 42,000 from fixed assets suggests which of the following scenarios?
1
Fixed assets were sold at their book value
2
Fixed assets were sold at a loss
3
Fixed assets were sold at a higher value than their book value
4
Fixed assets were taken over by the partners