Question

X, Y, and Z are partners sharing profits and losses equally. Their capital balances on March 31, 2024, are ₹ 80,000, ₹ 60,000, and ₹ 40,000, respectively. Their personal assets are worth as follows:

X – ₹ 20,000, Y – ₹ 15,000, and Z – ₹ 10,000

The extent of their liability in the firm would be:

Options

• X – ₹ 80,000 : Y – ₹ 60,000 : and Z – ₹ 40,000

• X – ₹ 20,000 : Y – ₹ 15,000 : and Z – ₹ 10,000

• X – ₹ 1,00,000 : Y – ₹ 75,000 : and Z – ₹ 50,000

• Equal

Answer 1

X – ₹ 20,000 : Y – ₹ 15,000 : and Z – ₹ 10,000

Explanation:

In a partnership, each partner’s liability is unlimited. If the firm’s capital is not enough, the partners will cover the shortfall with their personal assets.

X’s personal assets = ₹ 20,000

Y’s personal assets = ₹ 15,000

Z’s personal assets = ₹ 10,000