A & B are partners sharing profits in ratio of 1:2. Their fixed capitals were ₹2,00,000 & ₹3,00,000 respectively. C was admitted with 1/4th share and brought ₹2,00,000 for his capital which was also kept fixed. C acquired his share of profit from B.

Calculate the total capital of the firm?

₹7,00,000

The correct answer is option 3- ₹7,00,000.

To find the total capital of the firm, we need to calculate the total capital contributed by all partners.

Initially, A's capital = ₹2,00,000

Initially, B's capital = ₹3,00,000

C brought ₹2,00,000 and it's mentioned that his capital is also kept fixed.

So, the total capital contributed by all partners is:

Total capital = A's capital + B's capital + C's capital
                     = ₹2,00,000 + ₹3,00,000 + ₹2,00,000
                     = ₹7,00,000