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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


Team Careers360 21st Jan, 2024
Answer (1)
Team Careers360 25th Jan, 2024

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.

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