Question

Final payment: Capital debit ₹50,000, profit ₹1,00,000, liability taken ₹8,000. Find payment.

• A. ₹32,000
• B. ₹58,000
• C. ₹42,000
• D. ₹52,000

Hint:

Final settlement = Capital ± Profit/Loss ± Assets/Liabilities adjustment.

Answer 1

The Correct Option is C

Concept: At dissolution, final settlement of a partner’s account is calculated by adjusting capital account with profits, losses, assets taken over, and liabilities assumed. The final balance represents amount payable or receivable.

Step 1: Start with capital balance.
Debit balance = ₹50,000

Step 2: Add profit share.
\[ 50,000 - 1,00,000 = -50,000 \]

Step 3: Add liability taken over.
\[ -50,000 + 8,000 = -42,000 \]

Step 4: Interpret result.
Negative balance = amount payable to partner \[ ₹42,000 \] Final Answer: ₹42,000