Total Capital of the New firm = ₹ 84,000
Sushi’s share in the new capital = ₹ 84,000 × 7/12 = ₹ 49,000
Shalu’s share in the new capital = ₹ 84,000 × 5/12 = ₹ 35,000
When Sushi's portion of the firm's new capital is compared to the amount on his capital's
credit, it is discovered that he must bring ₹ 7,000 in cash to cover the difference (₹ 49,000 –
₹ 42,000).
Similarly, Shalu's share of the company's new capital is ₹ 35,000, with ₹ 38,000 added to her
capital account. As a result, she will withdraw ₹ 3,000 from the firm, the surplus amount (₹
38,000 –₹ 35,000), to bring her capital in line with their new profit share ratio.
