Abhishek and Balkishan are partners sharing profits in the ratio of 2:1. Chandrika is admitted into the firm for 1/4 share of profits. Chandrika brings in Rs. 20,000 in respect of her capital. The capitals of old partners Abhishek and Balkishan, after all adjustments relating to goodwill, revaluation of assets and liabilities, etc., are Rs. 45,000 and Rs. 15,000 respectively. Calculate the cash to be brought in or paid off by the old partners to adjust their capitals in new ratio.
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → Rs. 5,000 to be withdrawn by Abhishek and Rs. 5,000 to be brought in by Balkishan
The new partner’s capital is the base: it fixes the total capital of the firm, which is then divided in the new profit sharing ratio.
New ratio (Chandrika takes 1/4 from the old partners in 2:1) = 2/4 : 1/4 : 1/4 = 2 : 1 : 1
Total capital = Rs. 20,000 × 4/1 = Rs. 80,000
Abhishek’s required capital = Rs. 80,000 × 2/4 = Rs. 40,000
Balkishan’s required capital = Rs. 80,000 × 1/4 = Rs. 20,000
Abhishek: Rs. 45,000 − Rs. 40,000 = Rs. 5,000 to withdraw
Balkishan: Rs. 20,000 − Rs. 15,000 = Rs. 5,000 to bring in
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):
|
