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Question
A, B and C are in partnership business. A used ₹ 2,00,000 belonging to the firm without the information to other partners and made a profit of ₹ 35,000 by using this amount. Which decision should be taken by the firm to rectify this situation?
Options
A need to return only ₹ 2,00,000 to the firm.
A is required to return ₹ 35,000 to the firm.
A is required to pay back ₹ 35,000 only equally to B and C.
A need to return ₹ 2,35,000 to the firm.
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Solution
A need to return ₹ 2,35,000 to the firm.
Explanation:
A is required to return both the principal amount of ₹ 2,00,000 and the profit of ₹ 35,000 earned through the use of the firm’s money. This ensures the firm is fully compensated for both the amount and the profit generated from it. Therefore, A needs to return ₹ 2,00,000 (the amount used) + ₹ 35,000 (the profit earned), totalling ₹ 2,35,000.
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|
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