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Three partners’ capitals are to be maintained in the ratio 2:2:1. If the total capital is ₹5,00,000, what is the required capital of the third partner?

Answer and explanation

Correct answer: ₹1,00,000

The governing concept is the allocation of total partner capital according to the stated ratio. The ratio 2:2:1 contains 2 + 2 + 1 = 5 total parts. The third partner is assigned one part, so the value of one part is ₹5,00,000 ÷ 5 = ₹1,00,000. Equivalently, the required capital is ₹5,00,000 × 1/5 = ₹1,00,000. Therefore option A is correct. Option B represents two ratio parts and would apply to either of the first two partners. Option C is half of the total, not one-fifth, while option D is the entire firm’s capital. The calculation assumes the ratio applies directly to total capital.

Related tags

Capital RatioTotal CapitalPartner CapitalCapital AccountsPartnership Accounts Basic ConceptsAccountancyClass 12 Mcq

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