The Balance Sheet as on April 1, 2025 of Mohit, Neeraj and Sohan who are partners in a firm sharing profits according to their capitals shows the capital balance of Rs. 80,000, Rs. 40,000 and Rs. 40,000 respectively. On March 31, 2026, Neeraj decided to retire from the firm and was paid for his share in the firm and it was decided that the new capital of the firm would be fixed at Rs. 1,20,000. The capital account of Mohit and Sohan after all the necessary adjustments showed the credit balance of Rs. 82,000 and Rs. 41,000 respectively. How much capital Sohan needs to bring or withdraw so as to keep the capital balance as per the requirement of the newly constituted firm?
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → Sohan will withdraw Rs. 1,000
When the total capital of the new firm is fixed, it is divided among the continuing partners in their new profit sharing ratio. A partner whose adjusted capital is above his new capital withdraws the excess; one who is below brings in the shortfall.
Partners share profits in the ratio of capitals = 80,000 : 40,000 : 40,000 = 2 : 1 : 1
New ratio of Mohit and Sohan = 2 : 1
Sohan's new capital = Rs. 1,20,000 × 1/3 = Rs. 40,000
Sohan's adjusted capital = Rs. 41,000
Excess = Rs. 41,000 − Rs. 40,000 = Rs. 1,000, to be withdrawn
Mohit's new capital is Rs. 80,000 against Rs. 82,000, so he too withdraws Rs. 2,000.
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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