Multiple choice

The capital of A,B and C are Rs. 1,00,000; RS. 75,000 and Rs. 50,000 profits are shared in the ratio of 3 :2 :1. B retires on the basis of firm purchased by A and C. The new ratio between A and C is 3 :1. Find the capital of A and C.

  1. Rs. 1,25,000 and Rs. 1,00,000

  2. Rs. 1,46,250 and Rs. 42,000

  3. Rs. 1,56,250 and Rs. 68,750

  4. Rs. 86,250 and Rs. 46,250
Reveal answer Fill a bubble to check yourself
C Correct answer
AI explanation

The total capital of the new firm is the sum of the existing capitals of A, B and C, which is 1,00,000 plus 75,000 plus 50,000, equaling 2,25,000. After B retires, A and C share the combined capital of 2,25,000 in their new profit sharing ratio of 3:1. A's new capital is 3/4 of 2,25,000, which is 1,56,250, and C's new capital is 1/4 of 2,25,000, which is 68,750.

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