Lisa, Monika and Nisha are partners in a firm sharing profits and losses in the ratio of 2:2:1. Their capital A/c stood at ₹50,000, ₹50,000, and ₹25,000 respectively. Monika died and the balance in the reserve on that date was ₹15,000. If the goodwill of the firm is ₹30,000 and the profit on revaluation is ₹7,050.

What amount will be transferred to Monika's executor account?

₹70,820

The correct answer is option 2- ₹70,820.

Reserve and revaluation profit is distributed between partners in their old ratio.

Monika share in reserve = 15,000 x 2/5
                                       = ₹6,000

Monika share in revaluation = 7,050 x 2/5
                                            = ₹2,820

Monika share in goodwill = 30,000 x 2/5
                                        = ₹12,000

Monika Capital A/c balance = ₹50,000

Total amount due to Monika = 6,000 + 2,820 + 12,000 + 50,000
                                             = ₹70,820

This amount will be transferred to Monika's executor account due to his death.