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:
Installment to be paid on March 31, 2019 is
Option 1: Rs 32,500
Option 2: Rs 35,000
Option 3: Rs 30,000
Option 4: Rs 27,500
Correct Answer: Rs 30,000
Solution : Answer = Rs 30,000
Instalment paid on March 31, 2019
= 25000 + 5000 =30,000
Hence, the correct option is 3.