A and B are partners in a firm sharing profits in the ratio 2 : 1. C is admitted into the firm with 1/4th share in profits and he brings Rs. 30,000 as his capital. If the capitals of A and B are to be adjusted in their profit sharing ratio then the capital of A will be-
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → Rs. 60,000
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A and B share profits = 2 : 1
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C is admitted with 1/4 share
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Capital brought by C = ₹30,000
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Capitals of A and B are to be adjusted in their profit-sharing ratio (2 : 1) according to the new total capital.
If ¼ share = ₹30,000,
then total capital = 30,000 × 4 = ₹1,20,000.
After C’s admission, A and B together have = 1 − ¼ = ¾ share.
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C’s share (¼) = ₹30,000
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Remaining capital for A and B = ₹1,20,000 − ₹30,000 = ₹90,000
- A and B share this ₹90,000 in their old ratio 2 : 1
- A = 2/3 * 90000 = 60,000
- B = 1/3 *90,000 = 30,000