Read the following passage and answer the question.

X, Y, Z were partners sharing profits and losses in the ratio of 4:3:2. Z died on 30 June 2020 on which date his capital is ₹1,00,000, and after doing all adjustments his capital balance will be ₹1,74,000. His share of profit from the closing of last year till his death is ₹7,500. Z's executor is paid ₹14,000 on Ist July 2020 and the balance in 2 equal annual installments starts from 30th June,2021 with interest @ 6%p.a. Accounts are closed on 31st March.

How much amount is transferred to the Z's executor account?

₹1,74,000

The correct answer is option 2- ₹1,74,000.

Total due balance to Z is 1,74,000 which is transferred to executor account. from this balance 14,000 is paid immediately and the Balance is paid in 2 equal installments and the amount paid to the executor is ₹1,60,000. This will be paid into 2 equal annual installments means 80,000 each year plus interest.

Z's Executor Account