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In a partnership, capitals are in the profit-sharing ratio \(5:3\). If the total capital is \(\text{Rs }320,000\), what is B's required capital?

Answer and explanation

Correct answer: \(\text{Rs }120,000\)

Since capitals are to be in the profit ratio, \(A:B=5:3\). Total ratio parts \(=5+3=8\). B's share of total capital is \(\frac{3}{8}\times 320,000=120,000\). So B's required capital is \(\text{Rs }120,000\).

Related tags

Partnership AccountsCapital AccountsProfit-Sharing RatioProportionRequired Capital

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