R and S are partners sharing profits in the ratio of 2 : 1 respectively. R's Capital is Rs1,02,000 and S's Capital is Rs 73,000. They admit M and agree to give him 1/5th share in future profit. M brings Rs14,000 as his share of goodwill. He agrees to contribute capital in the new profit sharing ratio. How much capital will be brought by M?

₹43750

The correct answer is option 1- ₹43750.

Total Capital of R & S = 1,02,000 + 73,000
                               = ₹1,75,000

Total share = 1
M' share = 1/5
Share of R and S in new firm = 1-1/5
                                          = 4/5
Total Capital of firm on the basis of share of R & S = 1,75,000*5/4
                                                                         =2,18,750
Share of M in capital = 1/5*2,18,750
                              = 43,750