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Question : P, Q and R are partners sharing profits and losses equally. Their capital balances at the beginning of the financial year were Rs.80,000, Rs.60,000 and Rs.40,000 respectively. Their personal assets were: P Rs.20,000, Q Rs.15,000 and R Rs.10,000. The extent of their liability towards the firm would be:

Option 1: P Rs.80,000, Q Rs.60,000, R Rs.40,000

Option 2: P Rs.20,000, Q Rs.15,000, R Rs.10,000

Option 3: P Rs.1,00,000, Q Rs.75,000, R Rs.50,000

Option 4: Equal


Team Careers360 18th Jan, 2024
Answer (1)
Team Careers360 19th Jan, 2024

Correct Answer: P Rs.1,00,000, Q Rs.75,000, R Rs.50,000


Solution : External liability = Opening capital + Personal assets.
P = Rs.80,000 + Rs.20,000 = Rs.1,00,000.
Q = Rs.60,000 + Rs.15,000 = Rs.75,000
R = Rs.40,000 + Rs.10,000 = Rs.50,000.
Hence, the correct option is 3.

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