Answer the next 5 questions from the passage-

A, B and C are partners in a firm sharing profits in the ratio of 3:2:1. D is admitted into the firm for 1/4th share in profits, which he gets as 1/8th from A and 1/8th from B. The total capital of the firm is agreed upon as ₹1,20,000 and D is to bring in cash equivalent to 1/4th of this amount as his capital. The capitals of other partners are also to be adjusted in the ratio of their respective shares in profits. The capitals of A, B and C after all adjustments are ₹40,000, ₹35,000 and ₹30,000 respectively.

D will bring in cash as his capital -

₹30,000

The correct answer is option 1- ₹30,000.

The total capital of the firm is agreed upon as ₹1,20,000 and D is to bring in cash equivalent to 1/4th of this amount as his capital.

D's capital = 1,20,000 x 1/4
                = 30,000

Journal entry for this- 
Cash A/c  Dr.         30,000
       To D’s Capital A/c     30,000
(Capital brought in by D)