Question

Ashmit, Veena, and Rohan were partners in a firm sharing profits and losses in the ratio of 3 : 2 : 1. Veena retired on 31st March, 2024. The capital accounts of Ashmit, Veena, and Rohan showed a credit balance of ₹ 2,00,000, ₹ 1,80,000, and ₹ 1,20,000, respectively, after making all adjustments relating to revaluation, goodwill, reserves, etc. Veena was paid in cash brought in by Ashmit and Rohan in such a way that their capitals were in proportion to their new profit-sharing ratio. The new capitals of Ashmit and Rohan will be ______.

Options

• Ashmit ₹ 3,75,000 and Rohan ₹ 1,25,000

• Ashmit ₹ 2,00,000 and Rohan ₹ 1,20,000

• Ashmit ₹ 2,50,000 and Rohan ₹ 2,50,000

• Ashmit ₹ 3,00,000 and Rohan ₹ 2,00,000

Answer 1

Ashmit, Veena, and Rohan were partners in a firm sharing profits and losses in the ratio of 3 : 2 : 1. Veena retired on 31st March, 2024. The capital accounts of Ashmit, Veena, and Rohan showed a credit balance of ₹ 2,00,000, ₹ 1,80,000, and ₹ 1,20,000, respectively, after making all adjustments relating to revaluation, goodwill, reserves, etc. Veena was paid in cash brought in by Ashmit and Rohan in such a way that their capitals were in proportion to their new profit-sharing ratio. The new capitals of Ashmit and Rohan will be Ashmit ₹ 3,75,000 and Rohan ₹ 1,25,000.

Explanation:

Total capital of new firm = ₹ 2,00,000 + ₹ 1,80,000 + ₹ 1,20,000

= ₹ 5,00,000