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A and B, who share profits and losses in the ratio of 3:2 has the following balances: Capital of A Rs. 50,000; Capital of B Rs. 30,000; Reserve Fund Rs. 15,000. They admit C as a partner, who contributes to the firm Rs. 25,000 for 1/6th share in the partnership. If C is to purchase 1/6th share in the partnership from the existing partners A and B in the ratio of 3:2 for Rs. 25,000, find closing capital of C.
- a)Rs. 25,000.
- b)Rs. 19,000.
- c)Rs. 20,000.
- d)Rs. 18,000.
Correct answer is 'B'. Can you explain this answer?
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A and B, who share profits and losses in the ratio of 3:2 has the foll...
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Closing capital of C = Capital contributed by C + Purchase of share from existing partners
1. Capital contributed by C
C contributes Rs. 25,000 for 1/6th share in the partnership.
Therefore, C's capital = Rs. 25,000
2. Purchase of share from existing partners
C is purchasing 1/6th share in the partnership from A and B in the ratio of 3:2 for Rs. 25,000.
The total purchase price of 1/6th share = Rs. 25,000
Let the purchase price from A be X and from B be Y.
According to the given ratio, X/Y = 3/2
We can write X = 3Y/2
And X + Y = 25,000
Solving the above equations, we get X = Rs. 15,000 and Y = Rs. 10,000
The share purchased by C from A = 3/5 * X = 3/5 * 15,000 = Rs. 9,000
The share purchased by C from B = 2/5 * Y = 2/5 * 10,000 = Rs. 4,000
Therefore, the closing capital of C = Capital contributed by C + Purchase of share from existing partners
= Rs. 25,000 + Rs. 9,000 + Rs. 4,000
= Rs. 38,000
So, the correct answer is option B) Rs. 38,000.
1. Capital contributed by C
C contributes Rs. 25,000 for 1/6th share in the partnership.
Therefore, C's capital = Rs. 25,000
2. Purchase of share from existing partners
C is purchasing 1/6th share in the partnership from A and B in the ratio of 3:2 for Rs. 25,000.
The total purchase price of 1/6th share = Rs. 25,000
Let the purchase price from A be X and from B be Y.
According to the given ratio, X/Y = 3/2
We can write X = 3Y/2
And X + Y = 25,000
Solving the above equations, we get X = Rs. 15,000 and Y = Rs. 10,000
The share purchased by C from A = 3/5 * X = 3/5 * 15,000 = Rs. 9,000
The share purchased by C from B = 2/5 * Y = 2/5 * 10,000 = Rs. 4,000
Therefore, the closing capital of C = Capital contributed by C + Purchase of share from existing partners
= Rs. 25,000 + Rs. 9,000 + Rs. 4,000
= Rs. 38,000
So, the correct answer is option B) Rs. 38,000.
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A and B, who share profits and losses in the ratio of 3:2 has the following balances: Capital of A Rs. 50,000; Capital of B Rs. 30,000; Reserve Fund Rs. 15,000. They admit C as a partner, who contributes to the firm Rs. 25,000 for 1/6th share in the partnership. If C is to purchase 1/6th share in the partnership from the existing partners A and B in the ratio of 3:2 for Rs. 25,000, find closing capital of C.a)Rs. 25,000.b)Rs. 19,000.c)Rs. 20,000.d)Rs. 18,000.Correct answer is 'B'. Can you explain this answer?
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A and B, who share profits and losses in the ratio of 3:2 has the following balances: Capital of A Rs. 50,000; Capital of B Rs. 30,000; Reserve Fund Rs. 15,000. They admit C as a partner, who contributes to the firm Rs. 25,000 for 1/6th share in the partnership. If C is to purchase 1/6th share in the partnership from the existing partners A and B in the ratio of 3:2 for Rs. 25,000, find closing capital of C.a)Rs. 25,000.b)Rs. 19,000.c)Rs. 20,000.d)Rs. 18,000.Correct answer is 'B'. Can you explain this answer? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about A and B, who share profits and losses in the ratio of 3:2 has the following balances: Capital of A Rs. 50,000; Capital of B Rs. 30,000; Reserve Fund Rs. 15,000. They admit C as a partner, who contributes to the firm Rs. 25,000 for 1/6th share in the partnership. If C is to purchase 1/6th share in the partnership from the existing partners A and B in the ratio of 3:2 for Rs. 25,000, find closing capital of C.a)Rs. 25,000.b)Rs. 19,000.c)Rs. 20,000.d)Rs. 18,000.Correct answer is 'B'. Can you explain this answer? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A and B, who share profits and losses in the ratio of 3:2 has the following balances: Capital of A Rs. 50,000; Capital of B Rs. 30,000; Reserve Fund Rs. 15,000. They admit C as a partner, who contributes to the firm Rs. 25,000 for 1/6th share in the partnership. If C is to purchase 1/6th share in the partnership from the existing partners A and B in the ratio of 3:2 for Rs. 25,000, find closing capital of C.a)Rs. 25,000.b)Rs. 19,000.c)Rs. 20,000.d)Rs. 18,000.Correct answer is 'B'. Can you explain this answer?.
A and B, who share profits and losses in the ratio of 3:2 has the following balances: Capital of A Rs. 50,000; Capital of B Rs. 30,000; Reserve Fund Rs. 15,000. They admit C as a partner, who contributes to the firm Rs. 25,000 for 1/6th share in the partnership. If C is to purchase 1/6th share in the partnership from the existing partners A and B in the ratio of 3:2 for Rs. 25,000, find closing capital of C.a)Rs. 25,000.b)Rs. 19,000.c)Rs. 20,000.d)Rs. 18,000.Correct answer is 'B'. Can you explain this answer? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about A and B, who share profits and losses in the ratio of 3:2 has the following balances: Capital of A Rs. 50,000; Capital of B Rs. 30,000; Reserve Fund Rs. 15,000. They admit C as a partner, who contributes to the firm Rs. 25,000 for 1/6th share in the partnership. If C is to purchase 1/6th share in the partnership from the existing partners A and B in the ratio of 3:2 for Rs. 25,000, find closing capital of C.a)Rs. 25,000.b)Rs. 19,000.c)Rs. 20,000.d)Rs. 18,000.Correct answer is 'B'. Can you explain this answer? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A and B, who share profits and losses in the ratio of 3:2 has the following balances: Capital of A Rs. 50,000; Capital of B Rs. 30,000; Reserve Fund Rs. 15,000. They admit C as a partner, who contributes to the firm Rs. 25,000 for 1/6th share in the partnership. If C is to purchase 1/6th share in the partnership from the existing partners A and B in the ratio of 3:2 for Rs. 25,000, find closing capital of C.a)Rs. 25,000.b)Rs. 19,000.c)Rs. 20,000.d)Rs. 18,000.Correct answer is 'B'. Can you explain this answer?.
Solutions for A and B, who share profits and losses in the ratio of 3:2 has the following balances: Capital of A Rs. 50,000; Capital of B Rs. 30,000; Reserve Fund Rs. 15,000. They admit C as a partner, who contributes to the firm Rs. 25,000 for 1/6th share in the partnership. If C is to purchase 1/6th share in the partnership from the existing partners A and B in the ratio of 3:2 for Rs. 25,000, find closing capital of C.a)Rs. 25,000.b)Rs. 19,000.c)Rs. 20,000.d)Rs. 18,000.Correct answer is 'B'. Can you explain this answer? in English & in Hindi are available as part of our courses for CA Foundation.
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A and B, who share profits and losses in the ratio of 3:2 has the following balances: Capital of A Rs. 50,000; Capital of B Rs. 30,000; Reserve Fund Rs. 15,000. They admit C as a partner, who contributes to the firm Rs. 25,000 for 1/6th share in the partnership. If C is to purchase 1/6th share in the partnership from the existing partners A and B in the ratio of 3:2 for Rs. 25,000, find closing capital of C.a)Rs. 25,000.b)Rs. 19,000.c)Rs. 20,000.d)Rs. 18,000.Correct answer is 'B'. Can you explain this answer?, a detailed solution for A and B, who share profits and losses in the ratio of 3:2 has the following balances: Capital of A Rs. 50,000; Capital of B Rs. 30,000; Reserve Fund Rs. 15,000. They admit C as a partner, who contributes to the firm Rs. 25,000 for 1/6th share in the partnership. If C is to purchase 1/6th share in the partnership from the existing partners A and B in the ratio of 3:2 for Rs. 25,000, find closing capital of C.a)Rs. 25,000.b)Rs. 19,000.c)Rs. 20,000.d)Rs. 18,000.Correct answer is 'B'. Can you explain this answer? has been provided alongside types of A and B, who share profits and losses in the ratio of 3:2 has the following balances: Capital of A Rs. 50,000; Capital of B Rs. 30,000; Reserve Fund Rs. 15,000. They admit C as a partner, who contributes to the firm Rs. 25,000 for 1/6th share in the partnership. If C is to purchase 1/6th share in the partnership from the existing partners A and B in the ratio of 3:2 for Rs. 25,000, find closing capital of C.a)Rs. 25,000.b)Rs. 19,000.c)Rs. 20,000.d)Rs. 18,000.Correct answer is 'B'. Can you explain this answer? theory, EduRev gives you an
ample number of questions to practice A and B, who share profits and losses in the ratio of 3:2 has the following balances: Capital of A Rs. 50,000; Capital of B Rs. 30,000; Reserve Fund Rs. 15,000. They admit C as a partner, who contributes to the firm Rs. 25,000 for 1/6th share in the partnership. If C is to purchase 1/6th share in the partnership from the existing partners A and B in the ratio of 3:2 for Rs. 25,000, find closing capital of C.a)Rs. 25,000.b)Rs. 19,000.c)Rs. 20,000.d)Rs. 18,000.Correct answer is 'B'. Can you explain this answer? tests, examples and also practice CA Foundation tests.
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