Amar and Barun are partners, sharing profits in the ratio of 3:1. Charu is admitted into the firm for 1/5 share of profits. Charu brought in Rs. 30,000 in respect of her capital. The capitals of old partners Amar and Barun, after all adjustments relating to goodwill, revaluation of assets and liabilities, etc., are Rs. 65,000 and Rs. 15,000 respectively. It is agreed that partners' capitals should be according to the new profit sharing ratio. Calculate the amount brought in/withdrawn by Amar to adjust his capital according to the new profit sharing ratio.

Cash brought - Rs 25,000

Correct answer: Option (1) → Cash brought - Rs 25,000

Concept: When capitals are to be in the new profit-sharing ratio, the total capital is based on the incoming partner’s capital, and each old partner brings in or withdraws the difference – per Reconstitution of a Partnership Firm – Admission of a Partner.

Charu’s 1/5 share = Rs 30,000, so total capital of firm = 30,000 × 5 = Rs 1,50,000.
New ratio: Charu 1/5; remaining 4/5 in 3:1 → Amar 3/5, Barun 1/5, i.e. Amar : Barun : Charu = 3 : 1 : 1.
Amar’s required capital = 1,50,000 × 3/5 = Rs 90,000.
Amar’s adjusted capital = Rs 65,000, so he must bring in 90,000 – 65,000 = Rs 25,000 (cash brought).