Question

a and b partners, c is admittedwith 1/5 share c brings rs 120000 as his share towards capital the total net worth of the firm is?

a) 100000
b) 400000
c) 120000
d)600000​

Answer 1

Answer:

total net worth of firm is

= 120000×5/1=600000

total capital of firm is calculated on basis new partner share of profit and his share of capiral

Answer 2

Answer:

(D) 6,00,000

Explanation:

Total net worth of the firm is = ( new partner's capital amount +reciprocal of given share )

                                              = ( 1,20,000 X 5\1 )

                                               = 6,00,000