Practicing Success
On dissolution of a firm, a partner's capital account has a credit balance of ₹12,000. His share of profit in realisation account is ₹10,000. He has paid firm's realisation expenses of ₹3,000. He will finally get a payment of: |
₹22000 ₹25000 ₹19000 ₹15000 |
₹25000 |
The correct answer is option 2- ₹25000. When realisation expenses are paid by a partner on behalf of the firm: Thus, amount due to partner will be = Credit balance + profit on realisation + Realisation expenses |