A and B sharing profit in the ratio of 3 : 2 and having capitals of A Rs. 30,000 and B Rs. 15,000 decided to dissolve their firm. After paying of all liabilities, cash realised from various assets is Rs. 15000. How this amount will be distributed to A and B ?

A Rs. 9,000 and B Rs. 6,000

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A Rs. 10,000 and B Rs. 5,000

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A Rs. 7,500 and B Rs. 7,500

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A Rs. 12,000 and B Rs. 3,000

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Solution

The correct option is D A Rs. 12,000 and B Rs. 3,000
In piecemeal distribution, partners whose capitals are more than proportionate to other partner' capital should first be refunded so much to as to bring down their capitals to proportionate level. According to this, if B's capital is Rs. 15000 A's capital ought to be Rs. 22500 as profit sharing ratio is 3:2. So first of all Rs. 7500 will be paid to A to bring the capital of A at Rs. 22500. Now cash left Rs. 7500 will be distributed in the ratio of 3:2. A will get Rs. 4500 and B will get Rs. 3000. So total share of A will be Rs. 7500+Rs. 4500= Rs. 12000 and of B Rs. 3000

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