Ganga and Jamuna are partners sharing profits in the ratio of 2 : 1. They admit Saraswati for 1/5th share in future profits. On the date of admission, Ganga’s capital was ₹ 1,02,000 and Jamuna’s capital was ₹ 73,000. Saraswati brings ₹ 25,000 as her share of goodwill and she agrees to contribute proportionate capital to the new firm. How much capital will be brought by Saraswati?

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₹ 50,000 Explanation: Given: Capital of Ganga = ₹ 1,02,000 Capital of Jamuna = ₹ 73,000 Saraswati’s share of goodwill = ₹ 25,000 Total capital of theirs = ₹ 2,00,000 Saraswati’s share = $\frac{1}{5}$ Remaining share for Ganga and Jamuna = 1 - $\frac{1}{5}$ = $\frac{4}{5}$ Reciprocal of $\frac{4}{5}$ = $\frac{5}{4}$ Total Capital of the firm = 2,00,000 xx $\frac{5}{4}$ = 2,50,000 Saraswati’s capital = 2,50,000 xx $\frac{1}{5}$ = 50,000

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