Question

A & B are partners of a partnership firm sharing profits in the ratio of $5:3$ with capital of Rs. $2,50,000$ & Rs. $2,00,000$. C was admitted on the following terms: C would pay Rs. $50,000$ as capital and Rs. $16,000$ as Goodwill, for $1/5$th share of profit. Find the balance of capital accounts after admission of C.

• A. $2,60,000:2,06,000:50,000$
• B. $2,20,000:1,82,000:66,000$
• C. $2,92,500:2,25,000:50,000$
• D. $2,82,500:2,19,500:66,000$

Answer 1

The correct option is A $2,60,000:2,06,000:50,000$

The balance of partner's capital account is in ratio :- 260000:206000:50000