A partnership firm is dissolved. Partner A's capital is ₹1,00,000, B's is ₹80,000, and C's is ₹60,000. They share profits in 2:2:1 ratio. Using the Surplus Capital Method for piecemeal distribution, what is the sequence of partners receiving cash after their capitals are made proportionate to profit-sharing ratios?
A. A, then C, then B
B. A, then B, then C
C. B, then A, then C
D. C, then B, then A
Answer: Option B
Solution (By JKSSB Mock Tests)
In the Surplus Capital Method, we calculate the surplus capital by comparing actual capital with proportionate capital. The partner with the highest surplus capital receives cash first. Here, A has the highest surplus, followed by B, then C.
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