Question

A and B are partners in a firm having capital balances of ₹ 90,000 and ₹ 60,000, respectively. General Reserve appeared in their books at ₹ 50,000, and advertisement suspense at ₹ 20,000. They admit C for `1/3`rd share and C is to bring a proportionate amount of capital. The capital amount of C will be ______.

Options

• ₹ 60,000

• ₹ 75,000

• ₹ 90,000

• ₹ 1,00,000

Answer 1

A and B are partners in a firm having capital balances of ₹ 90,000 and ₹ 60,000, respectively. General Reserve appeared in their books at ₹ 50,000, and advertisement suspense at ₹ 20,000. They admit C for `1/3`rd share and C is to bring a proportionate amount of capital. The capital amount of C will be ₹ 90,000.

Explanation:

Particulars	₹
Total Capital of A and B = 90,000 + 60,000	1,50,000
Add: General Reserve	50,000
Less: Advertisement Suspense	(20,000)
Total Capital of A and B after adjustments	1,80,000

For `2/3` rd share combined capital of A and B = 1,80,000

Total capital of the firm = `1,80,000 xx 3/2`

= 2,70,000

C’s Capital = `1/3 xx 2,70,000`

= 90,000