Question

Asha, Deepa and Lata are partners in a firm sharing profits in the ratio of 3 : 2 : 1. Deepa retires. After making all adjustments relating to revaluation, goodwill, payment to Deepa and accumulated profit etc., the capital accounts of Asha and Lata showed a credit balance of Rs. 1,60,000 and Rs. 80,000 respectively. It was decided to adjust the capitals of Asha and Lata in their new profit sharing ratio. You are required to calculate the new capitals of the partners i.e. Asha and Lata.

• A. Rs. 1,80,000 & Rs. 1,70,000
• B. Rs. 1,80,000 & Rs. 60,000
• C. Rs. 60,000 & Rs. 1,60,000
• D. Rs. 1,60,000 & Rs. 80,000

Hint:

When partners' capitals are to be adjusted, first find total capital, then distribute in the new profit-sharing ratio.

Answer 1

The Correct Option is B

Step 1: New profit-sharing ratio.
Original ratio = 3 : 2 : 1.
After Deepa retires, only Asha and Lata remain. Their ratio = 3 : 1.

Step 2: Total capital after adjustments.
Asha's capital = Rs. 1,60,000.
Lata's capital = Rs. 80,000.
Total = Rs. 2,40,000.

Step 3: Adjust capitals in new ratio (3:1).
Total = 2,40,000. Ratio = 3 + 1 = 4 parts.
Share of Asha = 3/4 × 2,40,000 = Rs. 1,80,000.
Share of Lata = 1/4 × 2,40,000 = Rs. 60,000.

Final Answer: \[ \boxed{\text{Asha = Rs. 1,80,000, Lata = Rs. 60,000}} \]