Arun, Bablu and Chetan sharing profits and losses in the ratio of 6:5:3 respectively. They agreed to take Deepak into partnership and give him a share of 1/8th on the following terms:
(a) That Deepak should bring in Rs. 4,200 as goodwill and Rs. 7,000 as his Capital;
(b) That after making the adjustments, the capital accounts of the old partners (who continue to share in the same proportion as before) be adjusted on the basis of the proportion of Deepak’s capital to his share in the business.
The New adjusted Capital of the Firm will be:
Answer & explanation
Correct answer: option 1
The correct answer is Option (1) → Rs. 56,000
When the old partners' capitals are to be adjusted on the basis of the new partner's capital, the new partner's capital is treated as the capital for his share, and the capital of the whole firm is worked out from it.
Deepak's capital Rs. 7,000 is for 1/8 share
Capital of the whole firm = Rs. 7,000 × 8/1 = Rs. 56,000
Capital of the old partners = Rs. 56,000 − Rs. 7,000 = Rs. 49,000
In 6:5:3, Arun Rs. 21,000, Bablu Rs. 17,500, Chetan Rs. 10,500
The Rs. 4,200 goodwill goes to the old partners and is not part of the firm's capital, so it plays no role in this figure.
The book's answer line gives the Balance Sheet total of Rs. 68,000; that total also includes the creditors and bills payable, so it is not the capital of the firm.
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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