Question

Ravi, Vani, and Toni were equal partners in a firm. After the retirement of Vani, the capital balances of Ravi and Toni were \rupee1,56,000 and \rupee1,08,000, respectively. The new capital of the firm was determined at \rupee2,80,000. It was decided that the capital will be in proportion of the profit-sharing ratio of the remaining partners. Toni will bring \_\_\_\_ for deficiency of his new capital.

• A. \rupee40,000
• B. \rupee12,000
• C. \rupee20,000
• D. \rupee32,000

Hint:

For capital adjustments in partnership firms, calculate each partner's required contribution based on the new profit-sharing ratio and compare it with their current balance.

Answer 1

The Correct Option is D

The profit-sharing ratio between Ravi and Toni after Vani's retirement is \(1:1\). 1. Total capital of the firm: \[ \text{Total capital} = \rupee2,80,000. \] 2. Capital to be contributed by each partner (in the ratio \(1:1\)): \[ \text{Capital of each partner} = \frac{\rupee2,80,000}{2} = \rupee1,40,000. \] 3. Current capital of Toni: \[ \text{Toni's current capital} = \rupee1,08,000. \] 4. Deficiency in Toni’s capital: \[ \text{Deficiency} = \rupee1,40,000 - \rupee1,08,000 = \rupee32,000. \] Thus, Toni needs to bring \rupee32,000 for the deficiency of his capital.