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X and Y are partners in a firm with capital of ₹18,000 and ₹20,000. Z brings ₹10,000 for his share of goodwill and he is required to bring proportionate capital for 1/3rd share in profits. The capital contribution of Z will be.​

Question

X and Y are partners in a firm with capital of ₹18,000 and ₹20,000. Z brings ₹10,000 for his share of goodwill and he is required to bring proportionate capital for 1/3rd share in profits. The capital contribution of Z will be.​

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Solution

To calculate the capital contribution of Z, we first need to determine the total capital of X and Y, which is ₹18,000 + ₹20,000 = ₹38,000.

Since Z is required to bring proportionate capital for 1/3rd share in profits, we divide the total capital of X and Y by 3 to get the capital contribution of Z.

So, ₹38,000 / 3 = ₹12,666.67

However, Z also brings ₹10,000 for his share of goodwill. This is not part of his capital contribution.

Therefore, the total capital contribution of Z will be ₹12,666.67.

This problem has been solved

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