X,Y & Z are partners sharing profits equally. Z retired from the firm. After adjustment, his capital account shows a credit balance of ₹100000 on 1st April 2021. Z is to be paid ₹37500 each year in 2 equal installments including interest @10%p.a. on the outstanding balance of each year. The balance is paid in 3rd year. What is the balance that is paid in 3rd year?

₹46475

₹100000 is to be paid to Z
In 1st year interest will be 100000*10/100= 10000
Amount to be paid in 1st year ₹37500, after this balance will be ₹110000-37500= ₹72500
In 2nd year interest will be 72500*10/100= 7250
Amount to be paid in 2nd year ₹37500, after this balance will be ₹79750-37500= ₹42250
In 3rd year interest will be 42250*10/100= 4225
So, amount to be paid in last year is 42250+4225= ₹46475