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Question

Accountancy Question on Shares

A and B are partners sharing profits in the ratio of 2:1. C is admitted for the 1/4th share of profits, who brings *20,000 as capital. After all adjustments related to goodwill, revaluation of assets and reassessment of liabilities etc, Capital of A and B are ₹45,000 and ₹15,000 respectively. It is agreed that partners capitals should be according to the new profit sharing ratio.
Determine the new capital of B.

A

₹ 20,000

B

₹ 40,000

C

₹ 80,000

D

₹ 45,000

Answer

₹ 20,000

Explanation

Solution

The correct option is (A): ₹ 20,000