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1 mark

and are partners in a firm sharing profits in the ratio . is admitted into the firm with a share in profits and brings as his capital. If the capitals of the old partners and are to be adjusted on the basis of 's capital contribution in their profit-sharing ratio, then what will be the adjusted capital of ?

  1. A
  2. B
  3. C
  4. D

Solution & Step-by-step Explanation

1. Determine the Total Capital of the firm based on C: 's share = 's capital = $
$

Divide the combined capital in the old profit-sharing ratio ():

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and are partners in a firm sharing profits in the ratio . is admitted into the firm with a share in profits and brings as his capital. If the capitals of the old partners and are to be adjusted on the basis of 's capital contribution in their profit-sharing ratio, then what will be the adjusted capital of ?
A
B
C
D

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