Anthony brought capital of ₹2,00,000. Capital of old partners would b…

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:

Liabilities	Amount (₹)	Assets	Amount (₹)
Creditor	50,000	Land & Building	2,50,000
Bank Loan	2,00,000	Plant & Machinery	1,80,000
Amar Capital	2,80,000	Goodwill	1,00,000
Akbar Capital	1,20,000	Stock	60,000
		Debtor	40,000
		Bank	20,000
	6,50,000		6,50,000

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’s capital and the new profit sharing ratio. Capital Balance of Amar & Akbar will be:

Answer & explanation

Correct answer: option 4

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

Anthony takes 1/5 share equally from Amar and Akbar (1/10 from each):

Amar = 3/5 − 1/10 = 5/10

Akbar = 2/5 − 1/10 = 3/10

Anthony = 2/10; new ratio 5 : 3 : 2

Total capital of the firm = ₹2,00,000 × 10/2 = ₹10,00,000

Amar’s capital = ₹10,00,000 × 5/10 = ₹5,00,000

Akbar’s capital = ₹10,00,000 × 3/10 = ₹3,00,000

NCERT (2026-27 edition):
Illustration

Extract from the NCERT textbook

NCERT (2026-27 edition):
Adjustment of Capitals – “Sometimes, at the time of admission, the partners agree that their capitals should also be adjusted so as to be proportionate to their profit sharing ratio. In such a situation, if the capital of the new partner is given, the same can be used as a base for calculating the new capitals of the old partners. The capitals thus ascertained should be compared with their old capitals after all adjustments relating to goodwill reserves and revaluation of assets and liabilities, etc. have been made; and then the partner whose capital falls short, will bring in the necessary amount to cover the shortage and the partner who has a surplus, will withdraw the excess amount of capital.”