# A, B and C are partners in a firm sharing profits in the ratio of 5 : 3 : 2. D is admitted into the firm for 1/4 share in profits, which he gets as 1/8 from A and 1/8 from B. The total capital of the firm is agreed upon as ₹ 3,20,000

A, B and C are partners in a firm sharing profits in the ratio of 5 : 3 : 2. D is admitted into the firm for 1/4 share in profits, which he gets as 1/8 from A and 1/8 from B. The total capital of the firm is agreed upon as ₹ 3,20,000 and D is to bring in cash equivalent to 1/4 of this amount as his capital. The capitals of other partners are also to be adjusted in the ratio of their respective shares in profits. The capitals of A, B and C after all adjustments are ₹ 1,00,000, ₹ 75,000 and ₹ 60,000 respectively. Calculate the new capitals of A, B and C, and record the necessary journal entries.

[Ans. New Ratio 15 : 7 : 8 ; 10, Cash brought in by A ₹ 20,000 and C ₹ 40,000; Cash withdrawn by B ₹ 19,000.]