Kavi, Mani, Vinayagam are partners in a firm sharing profits in the ratio of 2 : 1 : 1. Mani Retires. Kavi and Vinayagam decided to keep the capital of the firm at ₹1,20,000. The capital A/c of the partners showed a credit balance of ₹82,000/- for Kavi and ₹41,000/- for Vinayagam after all adjustment. The actual cash to be paid to Kavi and Vinayagam are.

₹2,000 and ₹1,000

The correct answer is Option (2) → ₹2,000 and ₹1,000.

Old ratio = 2:1:1
Mani retires and his share is 1/4
As no information is given so new ratio between Kavi and Vinayagam  will be as old ratio means 2:1.

Capital fixed for the firm = 1,20,000
Kavi's share in capital = 1,20,000 x 2/3
                                   = ₹80,000
Capital after adjustment ₹82,000
Excess capital that will be taken back by Kavi = 82,000 - 80,000
                                                                           = ₹2,000

Vinayagam's share in capital = 1,20,000 x 1/3
                                              = ₹40,000
Capital after adjustment  for Vinayagam = ₹41,000
Excess capital that will be taken back by Vinagayam = 41,000 - 40,000
                                                                                      = ₹1,000