CA CPT Model Test Paper 6 with solutions for online practice

X, Y and Z takes a joint life policy; their profit sharing ratio is 2:2:1. On death of Y, X and Z decides to share profits equally. They had taken a Joint life policy of Rs. 2,50,000 with the surrender value Rs. 50,000. What will be the treatment in the partner’s capital account on receiving the JLP amount if joint life policy is maintained at surrender value along with the reserve?