A and B are partners in a firm having capitals of 54,000 and 36,000 respectively. They admitted C for1/3rd share in the profits. C brought proportionate amount of capital. The Capital brought in by C wouldbe
Question
A and B are partners in a firm having capitals of 54,000 and 36,000 respectively. They admitted C for1/3rd share in the profits. C brought proportionate amount of capital. The Capital brought in by C wouldbe
Solution
To find out the capital brought in by C, we first need to determine the total capital of A and B.
Step 1: Add the capitals of A and B 54,000 (A's capital) + 36,000 (B's capital) = 90,000
This is the total capital of A and B.
Step 2: Since C is admitted for 1/3rd share in the profits, he must bring in capital proportionate to his share in the profits.
So, if the total capital of A and B is considered as 2/3 (since 1/3 is given to C), we need to find out what 1/3 of the total capital is.
Step 3: Divide the total capital by 2/3 to find the total capital of the firm when C is included. 90,000 ÷ 2/3 = 135,000
Step 4: Subtract the total capital of A and B from the total capital of the firm to find out the capital brought in by C. 135,000 (total capital) - 90,000 (capital of A and B) = 45,000
So, C would bring in a capital of 45,000.
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