Question

Ravi and Kishan are partners sharing profits in the ratio of 3 : 2. Their fixed capitals on 1st April 2023 were ₹ 2,00,000 and ₹ 1,00,000 respectively. The partnership deed provides that: Interest on capital is to be allowed at 6% p.a. and charged on drawings @ 10% p.a. Ravi was to be paid a salary of ₹ 5,000 p.m., whereas Kishan was to get a commission of 4% on sales. It is ascertained that Ravi withdrew ₹ 4,000 at the end of every month and Kishan withdrew ₹ 12,000 at the end of every quarter. Sales for the year ended 31st March 2024 amounted to ₹ 3,00,000. The net profit of the firm before making the above adjustments was ₹ 56,000.

If the capital of a partner is ₹ 1,00,000 and his personal assets are ₹ 40,000 and personal liabilities are ₹ 10,000, the extent of his liability in the firm will be:

Options

• ₹ 1,00,000

• ₹ 1,30,000

• ₹ 30,000

• ₹ 1,10,000

Answer 1

₹ 30,000

Explanation:

Personal Assets = ₹ 40,000

Personal Liabilities =  ₹ 10,000

Net personal assets = 40,000 − 10,000

= ₹ 30,000

In such cases, a partner’s capital may not be enough, so creditors can claim from his net personal assets.

Therefore, his liability in the firm is ₹ 30,000.