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?
Explanation:
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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