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Question : L, B and P were partners sharing profits and losses in the ratio of 4: 3: 2. P died on 1st July 2019 on which date the capitals of L, B and P after all necessary adjustments stood at Rs. 75,000; Rs. 65,000 and Rs. 45,000 respectively. L and B continued to carry on the business for 6 months without settling the account of P. During the 6 months ended 31st December 2019, a profit of Rs. 50,000 was earned by the firm.
Choose the correct options available with P's Executor under Section 37 of the Indian Partnership Act, 1932 should be exercised.

Option 1: Interest @ 6% p.a. on balance amount = Rs. 45,000 X 6/100 X 6/12= Rs. 1,350.

Option 2: Share in the subsequent profits attributable to the use of balance due to him Rs. 50,000 x Rs. 45,000/Rs. 1,85,000 = Rs. 12,162.

Option 3: Both 1 and 2

Option 4: None of the above


Team Careers360 11th Jan, 2024
Answer (1)
Team Careers360 13th Jan, 2024

Correct Answer: Both 1 and 2


Solution : Answer = Both 1 and 2

Interest @ 6% p.a. on balance amount = Rs. $45,000\times\frac{6}{100}\times\frac{6}{12}$ = Rs. 1,350.

Share in the subsequent profits attributable to the use of balance due to him $\frac{\text{Rs.50,000}}{1,85,000}\times{45000}$ = Rs. 12,162.
Hence, the correct option is 3.

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