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?
Answer & explanation
Correct answer: option 2
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.