CA CPT Model Test Paper 5 with solutions for online practice

Balance of M/s. Ram, Rahul and Rohit sharing profits and losses in proportion to their capitals, stood as Ram- Rs. 3,00,000; Rahul - Rs. 2,00,000 and Rohit- Rs. 1,00,000. Ram desired to retire from the firm and the remaining partners decided to carry on, Joint life policy of the partners surrendered and cash obtained Rs. 60,000. What will be the treatment for Joint Life Policy Account?