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.
The capitals of other partners are also to be adjusted in the ratio of their respective shares in profits. A will bring in cash as capital after adjustment amount-
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → Rs. 5,000
Each old partner’s capital is brought to his required capital: a partner whose present capital is short brings in the shortfall, and one whose capital is more withdraws the surplus.
New ratio = 9:5:4:6, so A’s required capital = Rs. 1,20,000 × 9/24 = Rs. 45,000
A’s capital after all adjustments = Rs. 40,000
Shortfall = Rs. 45,000 − Rs. 40,000 = Rs. 5,000, brought in by A in cash
Entry: Cash A/c Dr. Rs. 5,000 to A’s Capital A/c Rs. 5,000. Rs. 40,000 is A’s existing capital, not the amount he brings.
NCERT (2026-27 edition):
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