Question

Q.No: 5
A, B and C are partners sharing in the
profits in the ratio of 2: 2: 1. Their Capitals
are Rs. 50,000, Rs. 15,000 and Rs. 45,000
respectively. General Reserve Rs. 10,000
when distributed, A's Adjusted capital is
A) Rs. 5,000
B) Rs. 4,000
.
C) Rs. 2,000
D) Rs. 1,000​

Answer 1

Answer:

B ) 4000

Step by step Explanation :

• Profit sharing Ratio = 2 : 2 : 1

• General Reserve = 10,000

Adjusted capital When General reserve is distributed :

[ = Reserve × Ratio / 5 ]

• Ratio = share of Partners

• Reserve = 10,000

• 5 = 2 + 2 + 1 ( 2 : 2 : 1 )

• Adjusted capital of A :

= 10,000 × 2 / 5

= 20,000 / 5

= 4000

B ) 4000 ✓

• Adjusted capital of B :

= 10,000 × 2 / 5

= 20,000 / 5

= 4000

• Adjusted Capital of C :

= 10,000 × 1 / 5

= 10,000 / 5

= 2000

⟶ 4,000 + 4,000 + 2,000 = 10,000

10,000 = General Reserve