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Question
Choose the appropriate alternative from the given options:
Disha and Abha were partners in a firm. Farad was admitted as a new partner for 1/5th share in the profits of the firm. Farad brought proportionate capital. Capitals of Disha and Abha after all adjustments were ₹ 64,000 and ₹ 46,000 respectively. Capital brought by Farad was:
Options
₹ 22,000
₹ 27,500
₹ 55,000
₹ 28,000
Solution
The correct answer is ₹ 27,500.
| Working Notes: | |
| Farad’s share of profit | = 1/5 |
| Remaining Profits | = (1 – 1/5) = 4/5 |
| Disha’s New Share | = (4/5 x 1/2) = 2/5 |
| Abha’s New Share | = (4/5 x 1/2) = 2/5 |
| New ratio | = 2: 2: 1 |
| For 4/5 share partner’s capital | = ₹ (64,000 + 46,000)= ₹ 1,10,000 |
|
For 1 whole share of profit capital
|
= ₹ (1,10,000 x 5/4) |
| For 1/5th share Farad’s Capital | = ₹ (1,10,000 x 5/4 x 1/5) = ₹ 27,500 |
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