Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Admission of a Partner

Question:

In a firm, D was admitted as a new partner, it was decided that he will bring proportionate capital so as to give him 1/6th share in the profits of the firm. Adjusted capital of A, B, and C are 81,000, 44,000, and 22,000 respectively. Calculate D's share of capital.

Options:

₹29,400

₹1,76,400

₹1,47,000

₹24,500

Correct Answer:

₹29,400

Explanation:

The correct answer is option 1- ₹29,400.

Total Capital of new firm = 81,000 + 44,000 + 22,000
                                       = 1 47,000
Total share = 1
D's share = 1/6
Remaining share = 1 - 1/6
                            = 5/6

Total capital of the firm = 1,47,000*6/5 
                                     = 1,76,400

D's Capital = 1,76,400 x 1/6
                  = ₹29,400