The Realisation A/c of A & B Ltd. shows a profit of ₹15,000 on the event of dissolution. The Balance Sheet shows a General Reserve of ₹10,000 on 31st March 2021. The Capital of A & B show a credit balance of ₹10,000 each. How much amount they are emitted to receive on dissolution.
Answer & explanation
Correct answer: option 2
The correct answer is option (2)- ₹22,500 each.
General reserve is distributed equally = ₹10,000
It is distributed equally between partners as no profit sharing ratio is given. When no profit sharing ratio is mentioned then according to provisions of the Indian Partnership Act, 1932 profit are shared equally.
Share in reserve of both partners = 10,000 /2
= ₹5,000
Realisation profit is also shared equally means each partners got 15,000/2 i.e ₹7,500.
Capital of each partner = ₹10,000
Each partner got = 5,000 + 7,500 + 10,000
= ₹22,500