Lalit, Pankaj and Rahul are partners sharing profits in the ratio of 4:3:3. After all adjustments, on Lalit's retirement with respect to general reserve, goodwill and revaluation etc., the balances in their capital accounts stood at Rs. 70,000, Rs. 60,000 and Rs. 50,000 respectively. It was decided that the amount payable to Lalit will be brought by Pankaj and Rahul in such a way as to make their capitals proportionate to their profit sharing ratio. After Lalit's retirement, the new profit sharing ratio between Pankaj and Rahul is 1:1. New Capital of the firm will be-
Answer & explanation
Correct answer: option 1
The correct answer is Option (1) → Rs. 1,80,000
The continuing partners bring in the cash needed to pay Lalit. So the total capital of the new firm = the adjusted capitals of the continuing partners + the amount payable to the retiring partner.
Pankaj's capital (after adjustment) = Rs. 60,000
Rahul's capital (after adjustment) = Rs. 50,000
Amount payable to Lalit = Rs. 70,000
Total capital of the new firm = 60,000 + 50,000 + 70,000 = Rs. 1,80,000
In the ratio 1:1, Pankaj and Rahul will hold Rs. 90,000 each, so Pankaj brings Rs. 30,000 and Rahul Rs. 40,000 — together the Rs. 70,000 paid to Lalit. Rs. 1,10,000 leaves out the cash brought in.
NCERT (2026-27 edition):
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