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Capitals of three partners are to be kept in the ratio 2:2:1. Total capital is Rs 1,25,000. What will be the third partner's capital?

Answer and explanation

Correct answer: Rs 25,000

This is a capital-ratio allocation problem. The prescribed ratio 2:2:1 has five total parts. The value of one part is calculated as Rs 1,25,000 ÷ 5 = Rs 25,000. Since the third partner has one part, that partner's capital must be Rs 25,000. Therefore, option A is correct. Rs 50,000 would represent two parts and would be the capital of either of the first two partners. Rs 70,000 does not correspond to any whole-number share in the given ratio, and Rs 1,00,000 represents four parts rather than one. Adding the capitals of the partners gives Rs 50,000 + Rs 50,000 + Rs 25,000 = Rs 1,25,000, confirming the result.

Related tags

Three PartnersCapital RatioTarget CapitalCapital AccountsPartnership Accounts Basic ConceptsAccountancyClass 12 Mcq

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