Question

Final payment: Capital debit ₹50,000, profit ₹1,00,000, liability taken ₹8,000. Find payment.

• A. ₹32,000
• B. ₹58,000
• C. ₹42,000
• D. ₹52,000

Hint:

Final settlement = Capital ± Profit/Loss ± Assets/Liabilities adjustment.

Answer 1

The Correct Option is C

Step 1: Understanding the Concept:
The final payment to a partner is the net balance in their capital account after adjusting for their share of profit and any liabilities they have agreed to settle.
Step 2: Key Formula or Approach:
\[ \text{Final Payment} = \text{Profit Share} - \text{Capital Debit} - \text{Liability Taken} \]
Step 3: Detailed Explanation:
- Profit credit: 1,00,000
- Less Capital debit: 50,000
- Less Liability taken: 8,000
\[ \text{Payment} = 1,00,000 - 50,000 - 8,000 = 42,000 \]
Step 4: Final Answer:
The final payment is 42,000.