Question : X, Y and Z were partners in a firm sharing profits in the ratio of 2: 2: 1. Y died. On that date, the Capitals of X, Y and Z were Rs. 50,000, Rs. 70,000, and Rs. 35,000 respectively. Balance in the Workmen Compensation Reserve was Rs. 30,000 and the gain (profit) on Revaluation came to Rs. 7,500. B's executor will be paid____________.
Option 1: Rs 85,000
Option 2: Rs 80,000
Option 3: Rs 90,000
Option 4: None of the above
Correct Answer: Rs 85,000
Solution : Answer = Rs 85,000
| Y's capital a/c | |||
| To Y's executors a/c | 85,000 | By Bal b/d | 70,000 |
| By Revaluation a/c | 3,000 | ||
| ($7,500 \times \frac{2}{5}$) | |||
| By W.C.R | 12,000 | ||
| ($30,000 \times \frac{2}{5}$) | |||
| 85,000 | 85,000 | ||
Hence, the correct option is 1.




