Question

Kriti, Hina and Nidhi were partners, sharing profits in the ratio of 3 : 2 : 1. Nidhi retired. On the date of her retirement, Workmen Compensation Fund stood in the Balance Sheet at ₹ 1,50,000. Workmen Compensation Claim was ₹ 1,20,000. How much amount of Workmen Compensation Fund will be credited to Nidhi's Capital Account?

Options

• ₹ 30,000

• ₹ 10,000

• ₹ 5,000

• ₹ 15,000

Answer 1

₹ 5,000

Explanation:

Amount of WCR to be distributed among partners = ₹ 1,50,000 − ₹ 1,20,000 = ₹ 30,000

Share of Nidhi in WCR = `30,000 xx 1/6`

= ₹ 5,000