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 ₹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- ₹60,000.
Old ratio = 2:1 (A & B)
C admits = 1/4th share
Let total share = 1
C's share = 1/4
Remaining share = 1- 1/4
= 3/4
This 3/4 is distributed between A & B in 2:1.
A's new share = 3/4 x 2/3
= 6/12
B's new share = 3/4 x 1/3
= 3/12
NEW RATIO = 6/12 : 3/12 : 1/4
= 6/12 : 3/12 : 3/12
= 6:3:3 or 2:1:1
C's capital = 30,000
On basis of C's capital, total capital of the firm = 30,000 x 4/1
= 1,20,000
A's share in capital = 1,20,000 x 2/4
= 60,000