031 Suppose A, B and C share profits and losses in the ratio 3: 2: 1 after allowing interest on capital @ 9% p.a. Their capitals on 31st December, 2011 were: A 50,000, B 30,000 and C 20,000. On 1st January, 2012 the business was converted into a limited company and was valued at 1,30,000. A scheme of capitalisaton, whereby the mutual interest of partners may 31 remain intact as far as possible is suggested below: The total capital being 1,00,000 and the value placed on the business being 1,30,000 there is goodwill of 30,000 to be shared by the partners in the ratio of 3:2:1 or A 15,000 B 10,000 and C 5,000. The capital will now be: A 65,000, B40,000 and C 25,000 Taking B's capital as the basis, A's capital should be