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A's capital is Rs 240000 and the profit-sharing ratio A : B : C is 4 : 3 : 2. Taking A's capital as the base, what is B's required capital?

Answer and explanation

Correct answer: Rs 180000

Concept: If one partner's capital is taken as base, all partners' capitals must be proportional to their profit-sharing ratio. Calculation: A's share = 4 parts and equals Rs 240000, so one part = 240000 ÷ 4 = Rs 60000. B's share = 3 parts, hence B's capital = 3 × 60000 = Rs 180000. Why other options are wrong: Option B (Rs 120000) corresponds to 2 parts, not B's 3 parts, so it's incorrect; Option D (Rs 240000) equals A's 4 parts, not B's 3 parts. Exam tip: Divide the base capital by the base partner's ratio to get one part, then multiply by the required partner's parts.

Related tags

Partnership AccountsCapital RatioBase CapitalProfit SharingCapital AccountsPartnership Accounts Basic ConceptsAccountancyClass 12 Mcq

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