Question

Ashmit, Veena and Rohan were partners in a firm sharing profits and losses in the ratio of 3 : 2 : 1. Veena retired on 31st March, 2024. The capital accounts of Ashmit, Veena and Rohan showed a credit balance of ₹ 2,00,000, ₹ 1,80,000 and ₹ 1,20,000 respectively after making all adjustments relating to revaluation, goodwill, reserves etc. Veena was paid in cash brought in by Ashmit and Rohan in such a way that their capitals were in proportion to their new profit sharing ratio. The new capitals of Ashmit and Rohan will be :

• A. Ashmit ₹ 3,75,000 and Rohan ₹ 1,25,000
• B. Ashmit ₹ 2,00,000 and Rohan ₹ 1,20,000
• C. Ashmit ₹ 2,50,000 and Rohan ₹ 2,50,000
• D. Ashmit ₹ 3,00,000 and Rohan ₹ 2,00,000

Hint:

To adjust capital after retirement, add the outgoing partner's capital to the existing capital and then divide as per new profit-sharing ratio.

Answer 1

The Correct Option is D

Step 1: Determine total capital after Veena’s retirement.
The total capital after Veena’s retirement should be ₹ 5,00,000 (i.e., ₹ 2,00,000 + ₹ 1,20,000 + ₹ 1,80,000). This includes the amount to be paid to Veena. Step 2: Divide ₹ 5,00,000 in new ratio 3:2.
\[ \text{Ashmit's new capital} = \frac{3}{5} \times 5,00,000 = ₹ 3,00,000 \] \[ \text{Rohan's new capital} = \frac{2}{5} \times 5,00,000 = ₹ 2,00,000 \] Final Answer: Ashmit ₹ 3,00,000 and Rohan ₹ 2,00,000.