X and Y are the partners in a firm, sharing profit and losses in the ratio of 2:1. Mrs. X has given a loan of ₹25,000 to the firm and Y has also given ₹15,000 loan to the firm. The firm was dissolved and its assets were realized for ₹30,000. How much amount Mrs X and Y would get as the repayment of their Loans?
Answer & explanation
Correct answer: option 2
The correct answer is option 2- Mrs X- ₹25,000 and Y - ₹5,000.
According to section 48 of the Indian Partnership Act- 1932, outside liabilities are paid before payment of loan by partner.
Amount realised = ₹30,000
Hence, Mrs X's loan (₹25,000) will be paid first and then the remaining amount (₹5,000) will be paid towards the repayment of B's loan.