Amar & Akbar were partners in a firm sharing P & L in ratio 3 : 2. Their Balance Sheet as at March 31, 2023 was as under:

They admitted Anthony as a new partner for 1/5 share which he acquired equally from Amar and Akbar.

Based on above information, answer questions.

Anthony brought capital of ₹2,00,000. Capital of old partners would be made proportionate on the basis of Anthony Capital. Capital Balance of Amar & Akbar will be:

₹5,00,000 and ₹3,00,000 respectively

The correct answer is Option (4) - ₹5,00,000 and ₹3,00,000 respectively.

Anthony capital for 1/5th share = ₹200000.

On basis of Anthony's capital total capital of the firm = 200000 x 5
                                                                            = ₹1000000
This will be shared by old partners in new ratio.
New ratio = 5:3:2

Amar's capital = 1000000 x 5/10
                     = ₹500000

Akbar's capital = 1000000 x 3/10
                      = ₹300000