Disha and Abha Were Partners in a Firm. Farad Was Admitted as a New Partner for 1/5th Share in the Profits of the Firm. Farad Brought Proportionate Capital. Capitals of Disha - Accountancy

Advertisement Remove all ads
MCQ

Choose the appropriate alternative from the given options:
Disha and Abha were partners in a firm. Farad was admitted as a new partner for 1/5th share in the profits of the firm. Farad brought proportionate capital. Capitals of Disha and Abha after all adjustments were ₹ 64,000 and ₹ 46,000 respectively. Capital brought by Farad was:

Options

  • ₹ 22,000

  • ₹ 27,500

  • ₹ 55,000

  • ₹ 28,000

Advertisement Remove all ads

Solution

The correct answer is ₹ 27,500.

Working Notes:   
Farad’s share of profit = 1/5
Remaining Profits = (1 – 1/5) = 4/5
Disha’s New Share = (4/5 x 1/2) = 2/5
Abha’s New Share = (4/5 x 1/2) = 2/5
New ratio = 2: 2: 1
For 4/5 share partner’s capital = ₹ (64,000 + 46,000)= ₹ 1,10,000
For 1 whole share of profit capital
 = ₹ (1,10,000 x 5/4)
For 1/5th share Farad’s Capital = ₹ (1,10,000 x 5/4 x 1/5) = ₹ 27,500
Concept: Admission of a Partner - Adjustment of Capitals
  Is there an error in this question or solution?
Advertisement Remove all ads
Advertisement Remove all ads
Share
Notifications

View all notifications


      Forgot password?
View in app×