Multiple choice

C is a new partner in a firm consisting of partners A and B. He adds Rs. 150,000 as his 1/4th share in profits. The capitals of other partners are to be adjusted on the basis of C's contribution and profit share. Find the amount to be added by A and B, if their initial capital amounts were Rs. 180,000 and Rs. 200,000, respectively.

  1. Rs. 25,000 and Rs. 45,000

  2. Rs. 45,000 and Rs. 25,000

  3. Rs. 20,000 and Nil

  4. Rs. 70,000 and Rs. 50,000
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

C's capital = Rs. 1,50,000 Thus, the capital of new firm = 1,50,000 x 4/1 = Rs. 6,00,000 divided in a new ratio in which A and B will contribute 6,00,000 - 1,50,000, i.e. Rs. 4,50,000 equally. Thus, they will contribute another Rs. 45,000 and Rs. 25,000, respectively. 

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