Question

8. X and Y are the partners sharing profit in
the ratio of 2:1. They admit Z into
partnership for 1/4th share for which he
brings Rs. 20,000 as his share of capital.
Hence, the adjusted capitals of X and Y will
be:-
a) Rs. 40,000 and Rs. 20,000 respectively.
O b) Rs. 32,000 and Rs. 16,000 respectively.
c) Rs. 60,000 and Rs. 30,000 respectively,
d) Rs. 20,000 and Rs. 40,000 respectively.​

Answer 1

Answer:

a) Rs. 40,000 and Rs. 20,000 respectively

SOLUTION:

Capital brought in by Z= 20000

Total Capital of the firm based on Z's share= 20000* 4/1

= 80000

Hence, Capital remaining after Z= 80000-20000 = 60000

X's adjusted Capital= 2/3 * 60000= 40000

Y's adjusted Capital= 1/3 * 60000