Question

A, B, C were partners sharing profits in the proportion of $1/2,1/3$ and $1/6$, respectively. On ${31}^{st}March,2001$ their capital stood as follows:
$A=Rs.8,00,000$
$B=Rs.6,00,000$
$C=Rs.5,00,000$
A sum of $Rs.2,40,000$, also appeared as reserve fund in their balance sheet on this date. B retires on the date when the goodwill of the firm was valued at $Rs.3,60,000$.
Profit and loss adjustment account prepared on that date without taking goodwill and reserve fund into consideration showed a net profit or $Rs.57,000$. The net amount payable to B will be _________.

• A. $Rs.7,65,000$
• B. $Rs.8,19,000$
• C. $Rs.7,27,000$
• D. $Rs,8,08,000$

Answer 1

The correct option is B $Rs.8,19,000$

Calculation of amount payable to B on his retirement.

Profit sharing ratio of A, B and C = 1/2 : 1/3 : 1/6 or 3 : 2 : 1

B's capital account

Dr. Cr.

Particulars	Amount	Particulars	Amount
To bank A/c	819000	By balance b/d By reserve fund A/c By goodwill A/c By Profit and loss A/c	600000 80000 120000 19000
	819000		819000

Therefore, amount payable to B on his retirement is Rs. 819000.