Question

Ravi, Vani, and Toni were equal partners in a firm. After the retirement of Vani, the capital balances of Ravi and Toni were ₹1,56,000 and ₹1,08,000 respectively. The new capital of the firm was determined at ₹2,80,000. It was decided that the capital will be in proportion to the profit-sharing ratio of the remaining partners. Toni will bring ...... for the deficiency of his new capital.

• A. Rs. 40,000
• B. Rs. 12,000
• C. Rs. 20,000
• D. Rs. 32,000

Hint:

When adjusting partners' capitals, first calculate the total new capital and distribute it according to the profit-sharing ratio, then find the excess or deficiency for each partner.

Answer 1

The Correct Option is D

Ravi and Toni were equal partners, so their new profit-sharing ratio is: \[ 1:1 \] Step 1: Determine the new capital of the firm:
The total new capital after Vani’s retirement is: \[ ₹2,80,000 \] Step 2: Calculate the required capital for each partner:
Since the new ratio is \(1:1\), the new capital for Ravi and Toni is: \[ \text{Ravi’s Share} = \frac{1}{2} \times ₹2,80,000 = ₹1,40,000 \] \[ \text{Toni’s Share} = \frac{1}{2} \times ₹2,80,000 = ₹1,40,000 \] Step 3: Calculate Toni’s deficiency:
Toni’s existing capital is: \[ ₹1,08,000 \] Deficiency in Toni’s capital: \[ \text{Deficiency} = ₹1,40,000 - ₹1,08,000 = ₹32,000 \] Conclusion:
Toni will bring ₹32,000 to meet the deficiency in his capital.