C is admitted with 1/4th share in profits. This means the remaining share for old partners A and B = 1 - 1/4 = 3/4
A and B were sharing profits in ratio 2:1. They will continue to share in the same ratio from the remaining 3/4th share.
Calculating new profit sharing ratio:
A's new share = 3/4 × 2/3 = 1/2
B's new share = 3/4 × 1/3 = 1/4
C's share = 1/4
New profit sharing ratio → A : B : C = 1/2 : 1/4 : 1/4 = 2 : 1 : 1
Since capitals are to be adjusted in the profit sharing ratio, the capitals should be in the ratio 2:1:1.
C brings Rs. 30,000 for his share (1 part in the ratio 2:1:1)
Using C's capital as base:
- 1 part = Rs. 30,000
- A's capital (2 parts) = 2 × 30,000 = Rs. 60,000
- B's capital (1 part) = 1 × 30,000 = Rs. 30,000
Answer: Option 2 - Rs. 60,000