Multiple choice

A and B are in partnership with Rs.30,000 and Rs. 20,000 as their respective Capitals. They admitted C as a partner for 1/6th share in profits. The amount of C's share In the Capital of the firm if he is asked to bring in Capital in proportion to his profit sharing ratio will be ________.

  1. Rs.10,000

  2. Rs.8,333

  3. Rs.16,667

  4. None of these
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Total capital of A and B = 30000 + 20000 = 50000. This represents 5/6 of the total capital (since C has 1/6). 5/6 * Total = 50000, so Total = 60000. C's share = 1/6 * 60000 = 10000.

AI explanation

The combined capital of A and B is Rs. 50,000 which represents 5/6 of the firm's total capital after admitting C. The total capital of the firm is calculated as Rs. 50,000 multiplied by 6/5, resulting in Rs. 60,000. Since C is admitted for 1/6th share, his required capital contribution is 1/6 of Rs. 60,000, which equals Rs. 10,000.

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