Question

9)
X and Y are partners sharing profits in the ratio 3:2. C is admitted for 1/5th share of profit. he is to bring
proportionate capital in the firm the capital of X and Y after all adjustments are 2,00,000 and 1,60,000
respectively. Calculate C's capital.
1​

Answer 1

Answer:

C's capital = 90,000

Explanation:

Solution :

Old Ratio :

X : Y = 3 : 2

• X = $\dfrac{3}{5}$

• Y = $\dfrac{2}{5}$

C is admitted for 1/5th share of profit.

He is to bring proportionate capital in the firm

Let,

The Share of Profit = 1

So,

• C's Share = $\dfrac{1}{5}$

Remaining Share =

$1 \: - \: \dfrac{1}{5} = \dfrac{4}{5}$

The capital of X and Y after all adjustments are 2,00,000 and 1,60,000 respectively

Adjusted combine capital of X and Y =

2,00,000 + 1,60,000 = 3,60,000

$\longrightarrow 2,00,000 + 1,60,000 = 3,60,000$

$\longrightarrow \: 3,60,000$

The capital of new firm = Total adjusted capital × Reciprocal of total share of X and Y

$\longrightarrow 3,60,000 \times \dfrac{5}{4} = 4,50,000$

$\longrightarrow \: 4,50,000$

proportionate capital of C =

$\longrightarrow \: 4,50,000 \times \dfrac{1}{5} = 90,000$

$\longrightarrow \: 90,000$

Therefore,

C's capital = 90,000