Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Dissolution of Partnership Firm

Question:

The profit on Realisation is ₹50000. X, Y, and Z are partners in a firm sharing profits 2:1:1. The capital ratio is 1:1:2. The profit on realisation transferred to X is............

Options:

₹30,000

₹25,000

₹20,000

₹10,000

Correct Answer:

₹25,000

Explanation:

Profit is distributed in profit-sharing ratio not in capital ratio, So, The profit on realisation transferred to X is =2/4 * 50,000 =25,000