CPT Problem Partnership

RANGARAM S (IPCC Student/Share Trading)   (155 Points)

23 June 2009  

Hi ,

I have the following problem to be solved :

A & B who share the profits and losses in the ratio of 3:2 has the following balances Capital of A Rs. 50,000 Capital of B Rs. 30,000 Reserve Fund Rs. 15,000 . They admit C as a partner who contributes to the firm Rs.25,000 for 1/6th share in the partnership. If C is to purchase 1/6th share in the parnership from the existing partners A and B in the ratio of 3:2 for Rs. 25000. Find the closing capital of C.

a)Rs.25,000

b)Rs 19,000

c) Rs. 20,000

d) Rs. 18,000

Please explain the answer.

Thanks in advance.