Question : X, Y and Z were in partnership sharing profits and losses in the ratio 3: 2: 1. Z retired from the firm on 1st April, 2016. After adjustments, his Capital Account shows a credit balance of Rs. 1,00,000 on the date of retirement. Z is to be paid in four equal annual instalments from 31st March, 2017 along with interest @ 10% p.a. Accounts are closed on March 31, every year.
Question:
Amount of Installment to be paid at the end of march 31,2018 will be
Option 1: Rs 32,500
Option 2: Rs 35,000
Option 3: Rs 30,000
Option 4: Rs 27,500
Correct Answer: Rs 32,500
Solution : Answer = Rs 32,500
Amount of Interest paid on March 31, 2018 = Rs 32500
(23000 + 7500 Interest)
Hence, the correct option is 1.