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The deed requires A and B's capitals to be equal. A's capital is seventy thousand rupees and B's capital is sixty-two thousand rupees. What must B do to equalize the capitals?

Answer and explanation

Correct answer: Bring eight thousand rupees

To make capitals equal B's capital must be increased to 70,000. B currently has 62,000 so deficiency = 70,000 − 62,000 = 8,000. Therefore B must bring in ₹8,000. The closest distractor (withdrawing ₹8,000) is wrong because that would further reduce B's capital rather than equalize it. Exam tip: compute the difference between capitals — if one is deficient it must bring in the difference; if in excess it withdraws the excess.

Related tags

Capital AdjustmentEqual CapitalPartnership DeedAccountancyNumericalPartnership Accounts Basic ConceptsClass 12 Mcq

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