Target Exam

CUET

Subject

-- Accountancy Part A

Chapter

Admission of a Partner

Question:

A and B are partners in a firm having capital balances of ₹54,000 and ₹36,000 respectively and share profits in the capital ratio. They admit C in partnership for 1/3rd share and C is to bring proportionate amount of capital. What will be the capital amount of C?

Options:

₹90,000

₹45,000

₹54,000

₹36,000

Correct Answer:

₹45,000

Explanation:

The correct answer is option 2- ₹45,000.

Capital of Firm on the basis of A and B = 54,000 + 36,000
                                                             = 90,000

Profit sharing ratio = 54,000 : 36,000
                              = 3:2

C's share = 1/3
Total share of the firm = 1
Remaining share of the firm after C = 1-1/3
                                                        = 2/3

Total capital of firm on basis of A and B = 90,000*3/2
                                                              = 1,35,000

C share = 1,35,000 x 1/3
             = 45,000

Capital of C is 45,000.