A and B are partners sharing profits in the ratio of 2:1. C is admitted for the 1/4th share of profits, who brings 20,000 as capital. After all adjustments related to goodwill, revaluation of assets and reassessment of liabilities etc. Capital of A and B are ₹45,000 and ₹15,000 respectively: It is agreed that partners capitals should be according to the new profit-sharing ratio.

Determine the new capital of B

The correct option is ₹20,000.

Let us determine the new capital of B step-by-step based on the new profit-sharing ratio and the capital brought in by the new partner, C.

Step 1: Calculate the total capital of the new firm
C is admitted for a 1/4th share of profits and brings in ₹20,000 as capital.
Therefore, the total capital of the new firm can be calculated on the basis of C's capital and share:
Total Capital = C's Capital × (Reciprocal of C's Share)
Total Capital = ₹20,000 × 4 = ₹80,000

Step 2: Determine the new profit-sharing ratio of the partners
Let the total profit share of the firm be 1.
C's share = 1/4
Remaining share for A and B = 1 - 1/4 = 3/4

The old ratio of A and B is 2:1. The remaining share of 3/4 will be divided between A and B in their old ratio:
A's new share = (2/3) of 3/4 = (2/3) × (3/4) = 2/4 = 1/2
B's new share = (1/3) of 3/4 = (1/3) × (3/4) = 1/4

Thus, the new profit-sharing ratio of A, B, and C is:
1/2 : 1/4 : 1/4, which simplifies to 2:1:1.

Step 3: Calculate the new capital of B
B's capital in the new firm is based on his new profit-sharing ratio (1/4th share) and the total capital of the firm (₹80,000):
B's New Capital = Total Capital × B's New Share
B's New Capital = ₹80,000 × (1/4) = ₹20,000

Therefore, the new capital of B is ₹20,000.