Read the following information and answer the question.

A, B & C are partners sharing profits in the ratio of 2:2:1. At the end of the year, the balance sheet shows the following information-
Capital accounts of partner- A ₹6,00,000, B ₹4,80,000 C ₹4,80,000
General reserve = ₹4,40,000
Workmen compensation reserve = ₹3,60,000
Creditors = ₹2,40,000
Land =  ₹8,00,000
Building = ₹6,00,000
Furniture = ₹2,40,000
Debtors = ₹4,00,000 (including ₹20,000 for provision)
Stock = ₹4,40,000
Cash = ₹1,40,000

Workmen's compensation claim was determined at ₹1,60,000. How much amount is left with the firm after distribution and claim?

Zero

The correct answer is option 3- Zero.

Fund = ₹3,60,000
Claim = ₹1,60,000
Remaining amount = 3,60,000 - 1,60,000
                              = ₹2,00,000

₹2,00,000  will be distributed to partners in their profit-sharing ratio because it is an accumulated reserve. So, no amount left with the firm.