Partnership

Retirement/Death

Easy

Comprehension:

Answer the questions from based on following paragraph

Preeti, Kabir and Shershah are partners in a firm. Kabir retires from the firm. On his date of retirement, Rs. 1,00,000 became due to him. Preeti and Shershah promised to pay him in four yearly equal installments plus interest @ 12% p.a. on the unpaid balance every year at the end of the year, to which he agreed.

The dues of Kabir is to be paid in 4 yearly installment.The amount of each installment will be

Rs. 20,000

Rs. 25,000

Rs. 37,000

Rs. 34,000

✅ Correct Option: 2

Total amount due to Kabir = Rs. 1,00,000

Number of yearly installments = 4

Since the installments are equal, the amount of each installment is calculated by dividing the total dues by the number of installments.

Amount of each installment = $\frac{\text{Total Dues}}{\text{Number of Installments}}$

Amount of each installment = $\frac{1,00,000}{4}$ = Rs. 25,000

Important Note: The interest @ 12% p.a. is charged separately on the unpaid balance and is paid in addition to the installment. The question asks only for the installment amount, not the total payment (installment + interest).

For example:

At the end of Year 1: Interest on Rs. 1,00,000 = Rs. 12,000 will be paid along with the installment of Rs. 25,000 (Total payment = Rs. 37,000)
At the end of Year 2: Interest on Rs. 75,000 = Rs. 9,000 will be paid along with the installment of Rs. 25,000 (Total payment = Rs. 34,000)

And so on for the remaining years.

Answer: Option 2: Rs. 25,000

2026: 13 May Shift 1

Anjana, Bandana and Chandana are partners in a firm. They share profit and loss of the firm equally. Bandana died and his share is acquired by Anjana and Chandana in the ratio of 1:1. New profit sharing ratio between Anjana and Chandana would be :-

2025: 15 May Shift 2

In case at the time of retirement of Kabir, his share of goodwill is valued at Rs 15,000, then what will be the total value of firm valued goodwill on his retirement?

2022: 23 Aug Shift 2

A, B and C are partner's sharing profits and losses in the ratio of $\frac{3}{8} : \frac{1}{2} : \frac{1}{8}$ .

If A dies, then the new ratio of B and C will be :

2025: 14 May Shift 1

Keshav, Nirmal and Pankaj are partners sharing profits and losses in the ratio of 4 : 3 : 2. Nirmal retires and the goodwill is valued at Rs. 72,000. Keshav and Pankaj decided to share future profits and losses in the ratio of 5 : 3. Gaining Ratio of Keshav and Pankaj is:

2022: 30 Aug Shift 2

If a partner retires in the middle of the year his/her share of profit from the date of last balance sheet till the date of retirement will be transferred to : ____

2025: 24 May Shift 1

A, B and C are partners sharing profits in the ratio of 3:2:1. A retires and his share is taken up by B and C in the ratio of 3:2. Calculate the new profit sharing ratio.

The dues of Kabir is to be paid in 4 yearly installment.The amount of each installment will be

Solution

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