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-

Rs. 1,80,000

The correct answer is Option (1) → Rs. 1,80,000

Step 1: Analyze the Adjusted Capital Balances

Before Lalit retires, the capital balances (after all adjustments for reserves, goodwill, and revaluation) are: 

• Lalit: Rs. 70,000

• Pankaj: Rs. 60,000

• Rahul: Rs. 50,000

Step 2: Understand the Capital Adjustment

The problem states that the amount payable to Lalit (Rs. 70,000) will be brought in by Pankaj and Rahul. This means the total capital of the new firm must be the sum of the existing capitals of the remaining partners plus the amount they bring in to pay off Lalit. Essentially, the total capital of the firm remains the same as the total adjusted capital of all partners combined: 

• After Lalit’s retirement, the amount payable to him (₹70,000) is to be brought in by Pankaj and Rahul.
• This means the total capital of the firm will now include this amount.
• Total Capital=60,000+50,000+70,000=1,80,000 

Step 3: Calculation of new capitals of the continuing partners: New profit-sharing ratio of Pankaj and Rahul = 1 : 1

Pankaj’s New Capital = Rs. 1,80,000 * 1/2 = 90,000

Rahul’s New Capital = Rs. 1,80,000* 1/ 2  = 90,000

Step 4: Calculation of the amounts to be brought in or withdrawn by the continuing partners