A, B and T are partners in a firm sharing profits in the ratio of 3:2:1. Z is admitted into the firm for 1/4 share in profits, which he gets as, 1/8 from A and 1/8 from B. The total capital of the firm is agreed upon as Rs. 1,20,000 and Z is to bring in cash equivalent to 1/4 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 T after all adjustments, are Rs. 40,000, Rs. 35,000 and Rs. 30,000 respectively. Calculate the cash brought in or paid to each partner.
Answer & explanation
Correct answer: option 1
The correct answer is Option (1) → A will bring in Rs. 5,000; B will withdraw Rs. 10,000; T will withdraw Rs. 10,000; and Z will bring in Rs. 30,000.
When the total capital of the new firm is fixed, each partner’s required capital = total capital × his new share. A partner whose present capital is short brings in the difference; one with a surplus withdraws it.
New profit sharing ratio:
A = 3/6 − 1/8 = 1/2 − 1/8 = 3/8 = 9/24
B = 2/6 − 1/8 = 1/3 − 1/8 = 5/24
T = 1/6 = 4/24 (unchanged)
Z = 1/4 = 6/24
New ratio = 9 : 5 : 4 : 6
Required capitals (total Rs. 1,20,000):
A = Rs. 1,20,000 × 9/24 = Rs. 45,000
B = Rs. 1,20,000 × 5/24 = Rs. 25,000
T = Rs. 1,20,000 × 4/24 = Rs. 20,000
Z = Rs. 1,20,000 × 6/24 = Rs. 30,000
Cash to be brought in or withdrawn:
A: Rs. 45,000 − Rs. 40,000 = brings in Rs. 5,000
B: Rs. 35,000 − Rs. 25,000 = withdraws Rs. 10,000
T: Rs. 30,000 − Rs. 20,000 = withdraws Rs. 10,000
Z: brings in Rs. 30,000 as his capital
In the book’s version the partners are A, B, C and D; C and D there are T and Z here, and every figure is the same.
Note: This question is from NCERT (2026-27). NTA sets numerical questions from NCERT too, so do not ignore NCERT while practising numericals.
NCERT (2026-27 edition):
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