Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Admission of a Partner

Question:
A and B are partners. C is admitted with 1/5 share. C brings Rs 1,20,000 as his share towards capital. What is the total net worth of the firm?
Options:
3,60,000
1,20,000
6,00,000
1,50,000
Correct Answer:
6,00,000
Explanation:
Net worth of the firm=1,20,000*5/1=6,00,000