Question

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

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

Hint:

When adjusting capital after a partner retires, always ensure the new capital is distributed based on the agreed profit-sharing ratio among the remaining partners.

Answer 1

The Correct Option is D

After Vani’s retirement, the total capital of the firm, \rupee 2,80,000, is to be shared between Ravi and Toni in their profit-sharing ratio, which is \( 1:1 \). Step 1: Calculate the required capital for each partner:
\[ \text{Total capital} = \rupee 2,80,000 \] \[ \text{Capital for each partner} = \rupee 2,80,000 \div 2 = \rupee 1,40,000 \] Step 2: Calculate Toni’s deficiency:
\[ \text{Toni’s existing capital} = \rupee 1,08,000 \] \[ \text{Deficiency} = \rupee 1,40,000 - \rupee 1,08,000 = \rupee 32,000 \] Conclusion:
Toni needs to bring \rupee 32,000 to make up for the deficiency in his capital.