The Balance Sheet of Mohit, Neeraj and Sohan who are partners in a firm sharing profits according to their capitals shows the capital balance of Rs. 80,000, Rs. 40,000 and Rs. 40,000 respectively as on March 31, 2025. On this date, Neeraj decided to retire from the firm and was paid for his share in the firm and it was decided that the new capital of the firm would be fixed at Rs. 1,20,000. The capital account of Mohit and Sohan after all the necessary adjustments showed the credit balance of Rs. 82,000 and Rs. 41,000 respectively. How much capital Sohan needs to bring in or withdraw so as to keep the capital balance as per the requirement of the newly constituted firm ?
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → Sohan will withdraw Rs. 1,000.
When the new capital of the firm is fixed at a stated amount, each continuing partner’s capital is brought to his share of that amount. The difference from his adjusted balance is what he brings in or withdraws.
Profit sharing ratio = ratio of capitals 80,000 : 40,000 : 40,000 = 2 : 1 : 1
After Neeraj retires, Mohit and Sohan share 2 : 1
Sohan’s required capital = 1/3 × Rs. 1,20,000 = Rs. 40,000
Sohan’s adjusted balance = Rs. 41,000
Surplus = Rs. 41,000 − Rs. 40,000 = Rs. 1,000, so Sohan withdraws Rs. 1,000
Mohit, at Rs. 82,000 against Rs. 80,000, withdraws Rs. 2,000. That Rs. 2,000 is his figure, not Sohan’s.
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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