Answer the next 5 questions from the passage-

A, B and C are partners in a firm sharing profits in the ratio of 3:2:1. D is admitted into the firm for 1/4th share in profits, which he gets as 1/8th from A and 1/8th from B. The total capital of the firm is agreed upon as ₹1,20,000 and D is to bring in cash equivalent to 1/4th of this amount as his capital. The capitals of other partners are also to be adjusted in the ratio of their respective shares in profits. The capitals of A, B and C after all adjustments are ₹40,000, ₹35,000 and ₹30,000 respectively.

Required capitals of all partners is-

A = ₹45,000 B = ₹25,000 C = ₹20,000 D = ₹30,000

The correct answer is option 2- A = ₹45,000 B = ₹25,000 C = ₹20,000 D = ₹30,000.

Old ratio = 3:2:1 (A, B & C)
D is admitted into the firm for 1/4th share in profits, which he gets as 1/8th from A and 1/8th from B.

New share = Old share - sacrificed share

New share of A = 3/6 - 1/8
                       = (12-3)/24
                       = 9/24

New share of B = 2/6 - 1/8
                       = (8-3)/24
                       = 5/24

New share of C = 1/6 (same as before)

D's share = 1/4

New ratio = 9/24 : 5/24 : 1/6 : 1/4
               = 9/24 : 5/24 : 4/24 : 6/24
               = 9:5:4:6

Total capital of the firm = 1,20,000

A's capital = 1,20,000 x 9/24
                = 45,000

B's capital = 1,20,000 x 5/24
                = 25,000

C's capital = 1,20,000 x 4/24
               = 20,000

D's capital = 1,20,000 x 6/24
                = 30,000

Thus capital of partners is A = ₹45,000 B = ₹25,000 C = ₹20,000 D = ₹30,000.