Question

Based on the above, answer the question. Amrita and Kalyani are partners sharing profits in the ratio of 3 : 2. They decided to expand the business by admitting Suraj as a new partner for 1/4th share. Suraj’s share of goodwill is valued at Rs 90,000 for which he compensated Amrita and Kalyani in the ratio 1 : 4. Following information is also provided:

• Machinery : Rs 25,00,000
• Land : Rs 10,00,000
• Computer : Rs 2,50,000
• Workmen compensation fund : Rs 5,30,000

Claim against workmen compensation is Rs 2,00,000 and goodwill appeared in the books at Rs 60,000.
What is Amrita’s share in the workmen compensation fund?

• A. Rs 3,00,000
• B. Rs 1,80,000
• C. Rs 1,20,000
• D. Rs 1,00,000

Hint:

"Look for the new and old values when questions like above are given."

Answer 1

The Correct Option is B

How each compensation affects partners: Value of workmen compensation fund = Rs 5,30,000 - Rs 2,00,000 = Rs 3,30,000
Amrita’s share = Rs 3,30,000 * (3/5) = Rs 1,80,000