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A new partner brings (₹30000) capital for (1/5) share. What will be the estimated total capital?

Answer and explanation

Correct answer: (₹150000)

The correct answer is option A: ₹150,000. The new partner’s capital of ₹30,000 represents a 1/5 share of the estimated total capital. Let total capital be T. Then T × 1/5 = ₹30,000. Multiply both sides by 5: T = ₹30,000 × 5 = ₹150,000. Equivalently, divide the contributed amount by the fraction: ₹30,000 ÷ 1/5 = ₹150,000. Option A is correct. Option B, ₹30,000, is only the new partner’s capital, not the whole firm’s estimated capital. Option C, ₹60,000, corresponds to doubling the amount and ignores the 1/5 share. Option D, ₹120,000, also does not satisfy 1/5 of the total being ₹30,000; one-fifth of ₹120,000 is only ₹24,000. Exam cue: total amount = partner’s amount ÷ partner’s fraction.

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Hidden GoodwillEstimated CapitalNumerical

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