At admission General Reserve is ₹84000. Old partners A and B share 4:3. How much will be credited to A?

Correct answer: ₹48000

The direct answer is option A: ₹48,000 is credited to A. General Reserve is an accumulated profit earned before admission, so it is distributed only among the old partners in their old ratio. A and B share in the ratio 4:3. Total parts are 4 + 3 = 7. A has 4 parts out of 7. Calculation: A’s credit = ₹84,000 × 4/7. Since ₹84,000 ÷ 7 = ₹12,000, A receives ₹12,000 × 4 = ₹48,000. B receives ₹12,000 × 3 = ₹36,000; the total is ₹84,000. Option A is correct because it is A’s four-part share. Option B is wrong because ₹36,000 is B’s three-part share. Option C is wrong because ₹42,000 is half the reserve and does not follow the 4:3 ratio. Option D is wrong because the entire reserve cannot be credited to A; B must receive his proportionate share. The new partner receives none of this old reserve merely because of admission. Memory cue: for a 4:3 ratio, divide the reserve into seven equal parts and give A four.