The profit on Realisation is ₹50,000. 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............
Answer & explanation
Correct answer: option 2
The correct answer is option 2- ₹25,000.
Profit is distributed in profit-sharing ratio not in capital ratio.
Profit of the firm = 50,000
X share in profit = 2/4
So, The profit on realisation transferred to X = 2/4 * 50,000
= 25,000