Question

A and B are partners in a firm having capitals of ₹ 54,000 and ₹ 36,000 respectively. They admitted C for `1/3`rd share in the profits. C brought a proportionate amount of capital. The Capital brought in by C would be ______.

Options

• ₹ 90,000

• ₹ 45,000

• ₹ 54,000

• ₹ 36,000

Answer 1

A and B are partners in a firm having capitals of ₹ 54,000 and ₹ 36,000 respectively. They admitted C for `1/3`rd share in the profits. C brought a proportionate amount of capital. The Capital brought in by C would be ₹ 45,000.

Explanation:

Combined Capital of A and B = 54,000 + 36,000

= 90,000

Remaining Share for A and B = `1 - 1/3`

= `2/3`

The combined capital of A and B, ₹ 90,000, corresponds to their remaining profit share of `2/3`. We can use this to infer the total capital of the entire new firm:

Total Capital of Firm = `90,000 xx 3/2`

= 1,35,000

C must bring a proportionate amount of capital equal to his `1/3`rd share of the total firm’s capital:

C’s Capital = `1,35,000 xx 1/3`

= 45,000