Question 56 Chapter 5 of +2- Part-

Question 56 Chapter 5 of +2-Part-1

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.

The solution of Question 56 Chapter 5 of +2 Part-1: –

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)=15
10
     
 =4  
 10  
A‘s a new share=2x4
35
     
 =8  
 15  
B‘s a new share=1x4
35
     
 =4  
 15  
 C’s share=1or1
515

New profit sharing ratio = 8 : 4 : 3

Calculation of old partner’s ratio :

If C’s1th capital is Rs. 60,000
5

Total Capital of the firm = 60,000X 5 = Rs. 3,00,000

A‘s capital in new firm=3,00,000x8
15
     
 =Rs. 1,60,000  
B‘s capital in new firm=3,00,000x4
15
     
 =Rs. 80,000  

Fresh Capital to be brought in by A & B 

  AB
Capital required in the new firm=1,60,00080,000
Existing capital of the firm=60,00040,000
Fresh Capital to be brought=1,00,0001,20,000

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Also, Check out the solved question of previous Chapters: –

Usha Publication – Accountancy PSEB (Class 12) – Volume I – Solution

Usha Publication – Accountancy PSEB (Class 12) – Volume II – Solution

Check out T.S. Grewal +2 Book 2020@ Official Website of Sultan Chand Publication

2 Book 1 min - Question 56 Chapter 5 of +2 Part-1 - USHA Publication 12 Class Part - 1
Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firm

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