Multiple choice

P & Q are partners sharing profits in the ratio of 2:1. R is admitted to the partnership with effect from 1st April on the term that he will bring Rs 20,000 as his capital for 1/4th share and pays Rs 9,000 for goodwill, half of which is to be withdrawn by P and Q. If profit on revaluation is Rs 6,000 and opening capital of P is Rs 40,000 and of Q is Rs 30,000, find the closing balance of each partners capital.

  1. 47,000 : 33,500 : 20,000

  2. 50,000 : 35,000 : 20,000

  3. 40,000 : 30,000 : 20,000

  4. 41,000 : 30,500 : 29,000
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A Correct answer
Explanation

P's share: 40000 + (2/3 * 9000) - (1/2 * 6000) + (2/3 * 6000) = 40000 + 6000 - 3000 + 4000 = 47000. Q's share: 30000 + (1/3 * 9000) - (1/2 * 3000) + (1/3 * 6000) = 30000 + 3000 - 1500 + 2000 = 33500. R's share is 20000.

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