Multiple choice

A and B are partners in a firm and are sharing in the ratio of $3 : 2$. C is admitted for $1/5$ share of profit and brings $Rs. 10,000$ as capital. The adjusted capital of B will be ____________.

  1. $Rs. 10,000$
  2. $Rs. 12,000$
  3. $Rs. 14,000$
  4. $Rs. 16,000$
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

C brings 10,000 for 1/5 share, so total capital of firm = 50,000. Remaining share for A and B is 4/5. A and B share in 3:2 ratio. B's capital = (4/5) * (2/5) * 50,000 = (8/25) * 50,000 = 16,000.

AI explanation

The combined capital of A and B is implied to be Rs. 40,000 to satisfy the proportional total capital calculation for C's 1/5 share against Rs. 10,000. Therefore, B's original share of the Rs. 40,000 capital based on the 3:2 ratio is 2/5 of Rs. 40,000. This calculates to Rs. 16,000, meaning the adjusted capital of B will be Rs. 16,000.

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