P and Q are partners in a firm. Profit for the year after allowing interest on capital to both partners ₹10,000 to P & ₹20,000 to Q but before salary to Q @ ₹5,000 per month amounted to ₹8,00,000. 10% of the divisible profit is to be set aside as general reserve. What is the amount that will be transferred to general reserve?

₹74,000

The correct answer is option 1- ₹74,000.

Profit is ₹8,00,000
Salary = 5000 X 12
           = ₹60,000

Interest on capital is already credited to partners so only salary adjustment will be there i.e., ₹ 8,00,000 -₹60,000 = ₹7,40,000
Divisible profit is ₹7,40,000
Amount transferred to general reserve = ₹7,40,000  x 10/100
                                                              = ₹74,000