Question

P, Q and R are partners sharing profits in the ratio of 3 : 2 : 1. They admitted U as a partner for `1/4`th share. On the date of U’s admission, the Workmen Compensation Fund was appearing in the books at ₹ 72,000. A claim of ₹ 24,000 was accepted against it. The amount of Workmen’s Compensation Fund credited to Q’s Capital Account was ______.

Options

• ₹ 16,000

• ₹ 24,000

• ₹ 8,000

• ₹ 48,000

Answer 1

P, Q and R are partners sharing profits in the ratio of 3 : 2 : 1. They admitted U as a partner for `1/4`th share. On the date of U’s admission, the Workmen Compensation Fund was appearing in the books at ₹ 72,000. A claim of ₹ 24,000 was accepted against it. The amount of Workmen’s Compensation Fund credited to Q’s Capital Account was ₹ 16,000.

Explanation:

Distributable Amount = Total Fund − Claim

= 72,000 − 24,000

= 48,000

Distribute the remaining funds among old partners:

P’s Share = `48,000 xx 3/6`

= 24,000

Q’s Share = `48,000 xx 2/6`

= 16,000

R’s Share = `48,000 xx 1/6`

= 8,000

The amount credited to Q’s Capital Account is ₹ 16,000.