A partnership firm has partners I, J, K with profit‑sharing ratio 4:3:2. Capital balances before dissolution are I Rs. 3,00,000; J Rs. 1,80,000; K Rs. 1,20,000. Partner K has died and is entitled to a 12% bonus on his capital. The firm has no goodwill and no revaluation. Prepare the adjusted capital balance of K after the bonus.
Answer
Rs. 1,34,400
The correct answer is Rs. 1,34,400 — Add bonus to K’s capital:
Step-by-step solution
- Calculate bonus on K’s capital:
- Add bonus to K’s capital:
Common mistake: Adding bonus to total capital instead of only the partner’s balance
Concept tested: Bonus on dying partner
Published · How this solution was prepared and checked
← All Dissolution of Partnership Firm questions