Question

Sameer, Rajat and Aastha were partners in a firm sharing profits and losses in the ratio of 2 : 3 : 1. Rajat retired from the firm on 31st March, 2025. On the date of Rajat’s retirement, the Balance Sheet of the firm showed a balance of ₹ 2,40,000 in Workmen Compensation Fund. The claim on account of workmen compensation amounted to ₹ 1,80,000. The amount credited to Rajat’s capital account on the treatment of Workmen Compensation Fund would be ______.

Options

• ₹ 1,20,000

• ₹ 20,000

• ₹ 30,000

• ₹ 10,000

Answer 1

Sameer, Rajat and Aastha were partners in a firm sharing profits and losses in the ratio of 2 : 3 : 1. Rajat retired from the firm on 31st March, 2025. On the date of Rajat’s retirement, the Balance Sheet of the firm showed a balance of ₹ 2,40,000 in Workmen Compensation Fund. The claim on account of workmen compensation amounted to ₹ 1,80,000. The amount credited to Rajat’s capital account on the treatment of Workmen Compensation Fund would be ₹ 30,000.

Explanation:

When a partner retires, any surplus in the Workmen Compensation Fund (the amount left after setting aside the actual liability) is distributed among the partners in their old profit-sharing ratio. Here, the surplus is ₹ 60,000 (calculated as ₹ 2,40,000 fund balance minus the ₹ 1,80,000 claim). According to the profit-sharing ratio of 2 : 3 : 1, Rajat’s share is `3/6`. Therefore, the amount credited to his capital account is ₹ 30,000 `(₹ 60,000 × 3/6)`.