Abhishek and Balkishan are partners sharing profits in the ratio of 2:1. Chandrika is admitted into the firm for 1/4 share of profits. Chandrika brings in Rs. 20,000 in respect of her capital. The capitals of old partners Abhishek and Balkishan, after all adjustments relating to goodwill, revaluation of assets and liabilities, etc., are Rs.45,000 and Rs.15,000 respectively. Calculate the cash to be brought in or paid off by the old partners to adjust their capitals in new ratio. |
Rs. 5,000 each to be brought in by Abhishek and Balkishan Rs. 5,000 to be withdrawn by Abhishek and Rs. 5,000 to be brought in by Balkishan Rs. 5,000 to be brought in by Abhishek and Rs. 5,000 to be withdrawn by Balkishan Rs. 5,000 each to be withdrawn by Abhishek and Balkishan |
Rs. 5,000 to be withdrawn by Abhishek and Rs. 5,000 to be brought in by Balkishan |
The correct answer is Option (2) → Rs. 5,000 to be withdrawn by Abhishek and Rs. 5,000 to be brought in by Balkishan |