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What will be the extent of liability if Prince, Rijule and Krishan are partners in a firm sharing profits and losses in an equal ratio. Their capital balance as of 31st March 2022 is ₹ 80,000, ₹ 60,000 and ₹ 40,000 respectively. Their assets are worth ₹ 20,000, ₹ 15,000, ₹ 10,000

21. What will be the extent of liability if Prince, Rijule and Krishan are partners in a firm sharing profits and losses in an equal ratio. Their capital balance as of 31^st March 2022 is ₹ 80,000, ₹ 60,000 and ₹ 40,000 respectively. Their assets are worth ₹ 20,000, ₹ 15,000, ₹ 10,000.

1. Prince - ₹ 80,000 : Rijule - ₹ 60,000 : Krishan - ₹ 40,000
2. Prince - ₹ 1,00,000 : Rijule - ₹ 50,000 : Krishan - ₹ 30,000
3. Prince - ₹ 1,00,000 : Rijule - ₹ 40,000 : Krishan - ₹ 10,000
4. Prince - ₹ 20,000 : Rijule - ₹ 15,000 : Krishan - ₹ 10,000

Answer: D) Prince - ₹ 20,000 : Rijule - ₹ 15,000 : Krishan - ₹ 10,000

Explanation:

The extent of liability of Prince, Rijule and Krishan in the partnership firm would be as follows:

Prince - ₹ 20,000 : Rijule - ₹ 15,000 : Krishan - ₹ 10,000