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If A's capital is Rs 1,20,000 and B's capital is Rs 90,000, how much can A withdraw to make the capitals equal?

Answer and explanation

Correct answer: Rs 30,000

Difference between A's and B's capital = Rs 1,20,000 − Rs 90,000 = Rs 30,000. Since only A is withdrawing, he must withdraw the entire excess so that both capitals become equal. Hence A should withdraw Rs 30,000. Option C (Rs 90,000) is wrong because withdrawing Rs 90,000 would leave A with Rs 30,000, not equal to B; options B and D are clearly incorrect as they imply excessive or total withdrawal. Exam tip: subtract the smaller capital from the larger to get the excess; if only one partner adjusts, that partner withdraws the full excess.

Related tags

Partnership AccountsCapital AccountsCapital EqualisationWithdrawalAccountancy Class 12Partnership Accounts Basic ConceptsAccountancyClass 12 Mcq

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