The question asks for the cash that D will bring as his capital.
Given that:
- Total capital of the firm = Rs. 1,20,000
- D is to bring cash equivalent to 1/4th of the total capital
D's Capital = 41 × Rs. 1,20,000 = Rs. 30,000
This is a direct calculation based on D's share in the firm's total capital. Since D is admitted for 1/4th share in profits and the partners have agreed that the total capital should be Rs. 1,20,000, D must contribute his proportionate share of this amount.
The capitals of other partners (Rs. 40,000 + Rs. 35,000 + Rs. 30,000 = Rs. 1,05,000) plus D's capital of Rs. 30,000 equals the agreed total capital of Rs. 1,20,000.
Answer: Option 1 - Rs. 30,000