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
Remaining share (Joint share of A and B)=15
A‘s a new share=2x4
B‘s a new share=1x4
 C’s share=1or1

New profit sharing ratio = 8 : 4 : 3

Calculation of old partner’s ratio :

If C’s1th capital is Rs. 60,000

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

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

Fresh Capital to be brought in by A & B 

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

Thanks, Please Like and share with your friends  

Comment if you have any questions.

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

Leave a Reply

About us

About us, we are here to improve your knowledge in all financial & Business related topics and to get better carrier opportunities. The author has about 10-year Experience in tuition Business. It is very difficult to teach a large number of students with a personal touch or in a classroom. 

Animation's Resource websites

All Icons and images used on my website were downloaded from the following website please go and download free:-