A, B and C are partners in a firm sharing profits in the ratio of . D is admitted into the firm for th share in profits, which he gets as th from A and th from B. The total capital of the firm is agreed upon as and D is to bring in cash equivalent to th of this amount as his capital. The capitals of other partners are also to be adjusted in the ratio of their respective shares in profits. The capitals of A, B and C after all adjustments are , and respectively.The capitals of other partners are also to be adjusted in the ratio of their respective shares in profits. A will bring in cash as capital after adjustment amount:
- ARs. 40,000
- BRs. 5,000
- CRs. 15,000
- DRs. 10,000
Solution & Step-by-step Explanation
1. Find A's Required Target Capital:Using the new ratio (), A's target share is .
2. Compare with A's Existing Adjusted Balance:
3. Compute Additional Cash to be Brought In:
2. Compare with A's Existing Adjusted Balance:
3. Compute Additional Cash to be Brought In: