X, Y and Z are the partners sharing profits in the ratio 2:1:1. Firm has a joint life policy of ₹ 1,20,000 and in the balance sheet it is appeaming at the surrender value, i.e., ₹ 20,000. On the death of X how this JLP will be distributed among partners:
A. 50,000 : 25,000 : 25,000
B. 60,000 : 30,000 : 30,000
C. 40,000 : 35,000 : 25,000
D. whole ₹ 1,20,000 to A
Answer:B
X, Y and Z are the partners sharing profits in the ratio 2:1:1. Firm has a joint life policy of ₹ 1,20,000 and in the balance sheet it is appeaming at the surrender value, i.e., ₹ 20,000. On the death of X how this JLP will be distributed among partners:
A. 50,000 : 25,000 : 25,000 B. 60,000 : 30,000 : 30,000 C. 40,000 : 35,000 : 25,000 D. whole ₹ 1,20,000 to A