Multiple choice

$X$ and $Y$ are partners sharing profits in the ratio of $2:1$. They admit $Z$ into the partnership for $1/4^{th}$ share in profit for which he brings in Rs.$20,000$ as his share capital. Hence, the adjusted capital of $X$ and $Y$ will be __________ .

  1. Rs.$40,000$ and Rs.$20,000$ respectively
  2. Rs.$32,000$ and Rs.$16,000$ respectively
  3. Rs.$60,000$ and Rs.$30,000$ respectively

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

If Z brings 20000 for a 1/4 share, the total capital of the firm is 80000. The remaining 3/4 share (60000) is divided between X and Y in a 2:1 ratio. X's share is (2/3) * 60000 = 40000, and Y's share is (1/3) * 60000 = 20000.

AI explanation

Z brings 20000 for a 1/4 share, making the total capital of the firm 80000. The remaining 3/4 share is held by X and Y, whose combined capital is 60000. To adjust their capitals to match their old profit sharing ratio of 2:1, X's capital becomes 2/3 of 60000 which is 40000, and Y's capital becomes 1/3 of 60000 which is 20000.

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