Amar and Barun are partners, sharing profits in the ratio of 3:1. Charu is admitted into the firm for 1/5 share of profits. Charu brought in Rs. 30,000 in respect of her capital. The capitals of old partners Amar and Barun, after all adjustments relating to goodwill, revaluation of assets and liabilities, etc., are Rs. 65,000 and Rs. 15,000 respectively. It is agreed that partners' capitals should be according to the new profit sharing ratio. Calculate the amount brought in/withdrawn by Amar to adjust his capital according to the new profit sharing ratio.
Answer & explanation
Correct answer: option 1
The correct answer is Option (1) → Cash brought - Rs. 25,000
When the partners agree that their capitals must follow the new profit sharing ratio, the new partner’s capital is the base: it stands for her share, so the capital of the whole firm follows from it.
Charu’s share = 1/5; Amar and Barun keep 4/5 in 3 : 1, that is 3/5 and 1/5
Total capital = Rs. 30,000 × 5 = Rs. 1,50,000
Amar’s required capital = 3/5 × Rs. 1,50,000 = Rs. 90,000
Amar’s adjusted capital = Rs. 65,000
Shortfall = Rs. 90,000 − Rs. 65,000 = Rs. 25,000, brought in
Barun needs 1/5 × Rs. 1,50,000 = Rs. 30,000 against his Rs. 15,000, so he brings in Rs. 15,000. That is the figure in Options (2) and (4): the right amount for the wrong partner.
Note: NTA picked this question from an NCERT (2026-27) illustration and changed the figures. Do not ignore NCERT while practising numericals.
NCERT (2026-27 edition):
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