Question

If total assets of a firm are ₹ 12,00,000 and total liabilities are ₹ 2,40,000, what will be the capitals of P, Q and R if they share profits in the ratio of their capitals and profit sharing ratio is 1 : 2 : 3:

Options

• P ₹ 4,80,000; Q ₹ 3,20,000; R ₹ 1,60,000

• P ₹ 1,60,000; Q ₹ 3,20,000; R ₹ 4,80,000

• P ₹ 2,00,000; Q ₹ 4,00,000; R ₹ 6,00,000

• P ₹ 6,00,000; Q ₹ 4,00,000; R ₹ 2,00,000

Answer 1

P 1,60,000; Q ₹ 3,20,000; R ₹ 4,80,000

Explanation:

Total assets are given as ₹ 12,00,000.

Total liabilities are given as ₹ 2,40,000.

Therefore, the total capital is calculated as:

= 12,00,000 – 2,40,000

= 9,60,000

The profit-sharing ratio of P, Q, and R is given as 1 : 2 : 3

The sum of the ratios is calculated as 1 + 2 + 3 = 6

P’s capital = `9,60,000xx1/6` = 1,60,000

Q’s capital = `9,60,000xx2/6` = 3,20,000

R’s capital = `9,60,000xx3/6` = 4,80,000