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Practice question

Question

A, B, and C were partners in a firm sharing profits and losses in the ratio of 2:2:1, respectively, with capital balances of Rs. 50,000 for A and B, and Rs. 25,000 for C. B declared to retire from the firm, and the balance in reserve on that date was Rs. 15,000. If the goodwill of the firm was valued at Rs. 30,000 and the profit on revaluation was Rs. 7,050, what amount will be transferred to the loan account of B?

Options

Choose one · Correct answer highlighted

Explanation

Rs. 70,820 partnership correct; deed provisions interest capital drawings as per Act.

Discussion

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