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Question 56 Chapter 5 of Class 12 Part – 1 Usha Publication
56. (Adjustment of Capital) A and B are in partnership sharing profit and loss in a 2: 1 ratio.1 They admit C for share. C brings Rs.60,000 as his capital. The capital accounts of A and B after all adjustments were Rs.60,000 and Rs. 40,000 respectively. It was decided to adjust to the capital of A and B on the basis of the proportion of C's capital to his share in the business. Calculate the amount paid or brought in by old partners.
We are providing a solution of Question 56 Chapter 5 of Class 12 Part – 1 Usha Publication in two formats. one is in Video format and another is in article format. Check out both formats as follows:
The video consists solution of question numbers from 55 to 57 Chapter no. 5 class 12 of Usha publication. To check the direct solution of question no. 56 from the following video by using time stamps of the video.
Calculation of new profit share ratio
Assuming total profits of the firm = Re 1
| Share of profit acquired by C | = | 1 |
| 5 |
| Remaining share (Joint share of A and B) | = | 1 | - | 1 |
| 5 | ||||
| = | 4 | |||
| 10 |
| A‘s a new share | = | 4 | x | 2 |
| 5 | 3 | |||
| = | 8 | |||
| 15 |
| B‘s a new share | = | 4 | x | 1 |
| 5 | 3 | |||
| = | 4 | |||
| 15 |
| C’s share | = | 1 | or | 3 |
| 5 | 15 |
New profit sharing ratio = 8 : 4 : 3
Calculation of Total Capital of the firm on the basis of C’s capital
= New partner capital X Reverse share of New Partner
| If C’s | 1 | th capital is Rs. 60,000 |
| 5 |
Total Capital of the firm = 60,000X 5 = Rs. 3,00,000
Calculation of new profit share ratio
| A‘s capital in new firm | = | 3,00,000 | x | 8 |
| 15 | ||||
| = | Rs. 1,60,000 |
| B‘s capital in new firm | = | 3,00,000 | x | 4 |
| 15 | ||||
| = | Rs. 80,000 |
Adjuted Capital of A = ₹ 60,000*
Adjuted Capital of B = ₹ 40,000*
*Calculate deficiency or surplus = New capital - Adjusted capital
A‘s deficiency or surplus = ₹ 1,60,000 - ₹ 60,000 = ₹ 1,00,000
B‘s deficiency or surplus = ₹ 80,000 - ₹ 40,000 = ₹ 40,000
Accounting & Commerce Educator
Sarbjit Singh holds a B.Com and M.Com degree and has over 12 years of teaching experience in double entry bookkeeping, financial accounting, and business studies.
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