Question

Ganga and Jamuna are partners sharing profits in the ratio of 2:1. They admit Saraswati for 1/5th share in future profits. On the date of admission, Ganga’s capital was ₹ 1,02,000 and Jamuna’s capital was ₹ 73,000. Saraswati brings ₹ 25,000 as her share of goodwill and she agrees to contribute proportionate capital of the new firm. How much capital will be brought by Saraswati? 

a) ₹ 43,750 

b) ₹ 37,500 

c) ₹ 50,000 

d) ₹ 40,000

Answer 1

c) ₹ 50,000 

Given,

Capital of Ganga = ₹ 1,02,000

Capital of Jamuna = ₹ 73,000

Saraswati's share of goodwill = ₹ 25,000

Total capital of theirs = ₹ 2,00,000

Let the total share be 1.

Therefore, remaining share = 1 - 1/5

= 5 - 1/5

= 4/5

Reciprocal of 4/5 = 5/4

So,

Capital of Saraswati = 1/5 of Total capital ÷ Remaining share

= 1/5 × ₹ 2,00,000 ÷ 4/5

= 1/5 × ₹ 2,00,000 × 5/4

= ₹ 50,000