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Commerce · Q1109

Accounting

Graduate and Post Graduate · Commerce · question 1109

Q1109

A and B sharing profits in the ratio of 3 : 2 took out a joint-life policy of Rs. 20,000 on 1st January 2000 for 20 years, paying annual premium of Rs. 1000. The surrender values of the policy were: 2000 - nil, 2001 - Rs. 550, 2002 - Rs. 970. On 8th march 2002 B was dead. What will be the amount to be paid to the policy holders-

A.
Rs. 7,250
B.
Rs. 7,380
Answer
C.
Rs. 8,407
D.
Rs. 9,360

Answer: Option B

Solution

Answer: Option B
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