Question

Q and T are partners in a firm having a capital of Rs 60,000 and 80,000 respectively. They admitted A for 1/3 rd share in profits. A brought proportionate amount of capital. The capital brought in by C would be.

(A) Rs 70,000
(B) Rs 1,40,00
(C) Rs 46,667
(D) None of the Above​

Answer 1

ANSWER:

answer is (A)70,000

EXPLANATION:

total capital of A and B= 1,40,000

2/3 would be share of A and B

1,40,000 X 3/2 = 2,10,000 (hidden goodwill of the firm)

capital C bought in would be 2,10,000-1,40,000=70,000

So C would get 70,000 as a capital and the answer would be option A

Answer 2

"(A)70,000"

Explanation:

Total Capital of A & B = 1,40,000; A = 60000 , B = 80000  

Share of A and B = 2 : 3

Hidden Goodwill = Reciprocal of Remaining share of C = 3/2

i.e                         = 1,40,000 X 3/2 = 2,10,000

Capital C bought in would be 2,10,000-1,40,000 = 70,000

So C would get 70,000 as a capital and the answer would be option A