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    A and B were partners sharing profits and losses in the ratio of 3:2. C was admitted as a new partner. It was decided that C will bring the necessary
    Question

    A and B were partners sharing profits and losses in the ratio of 3:2. C was admitted as a new partner. It was decided that C will bring the necessary capital so as to give him 1/5th share in the profits taking into consideration the capitals of A and B. After all adjustments, A’s capital was ₹18,00,000 and B’s capital was ₹28,00,000. The amount of capital brought in by C will be:

    A.

    ₹9,20,000

    B.

    ₹11,50,000

    C.

    ₹10,50,000

    D.

    ₹10,20,000

    Correct option is B


    C is to get 1/5 share, which means A and B together will hold 4/5 share of total capital after C's admission.
    Step 1: Total capital of existing partners
    A’s capital = ₹18,00,000 B’s capital = ₹28,00,000
    Total = 18,00,000 + 28,00,000 = ₹46,00,000
    This combined capital represents 4/5 of the total capital.
    Step 2: Compute total capital of the firm
    If 4/5 capital = ₹46,00,000 Then 1/5 capital = 46,00,000 ÷ 4 = ₹11,50,000
    Alternatively, Total capital = 46,00,000 × (5/4) = ₹57,50,000 C’s capital (1/5th) = 57,50,000 × 1/5 = ₹11,50,000
    Step 3: Capital to be brought by C
    C will bring ₹11,50,000.
    Thus, the correct answer is: ₹11,50,000

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