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The partnership deed prescribes a capital ratio of 5 : 3. If A's capital is ₹1,00,000, what should B's capital be?

Answer and explanation

Correct answer: Sixty thousand rupees

In the ratio 5 : 3, A corresponds to 5 parts. If 5 parts = ₹100,000, then one part = ₹100,000 ÷ 5 = ₹20,000. Hence B (3 parts) = 3 × ₹20,000 = ₹60,000. The closest distractor (₹40,000) would result from incorrectly taking 2 parts instead of 3; other options do not match the given ratio. Exam tip: Convert the ratio into the value of one part first, then multiply by the required number of parts.

Related tags

Partnership AccountsPartnership DeedCapital RatioRatio CalculationsPartnership Accounts Basic ConceptsAccountancyClass 12 Mcq

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