Question
Anil and Baldev are partners sharing profit and losses
in the ratio of 3: 2. Anil's capital is ₹ 60,000 and Baldev's capital is ₹ 30,000 before adjustment of Revaluation loss of ₹ 14,000 and General Reserve of ₹ 24,000. They admitted Chandramani as a new partner and agreed to give him 1/5 share of profits. Chandramani will bring proportionate capital. Calculate the capital of Chandramani:Solution
Anil & Baldev Capital after adjustment of the following: Revaluation Loss: (14,000) General Reserve: 24,000 Net : 10,000 This 10,000 will be distributed by the old partners in there old profit sharing ratio. A’ Share: 10,000 *3/5 = 6000 B Share: 10,000 *2/5 = 4000 Revised Capital after adjustment: A’s Capital : 60,000+6000= 66,000 B’s Capital 30,000+4,000 = 34,000 New partner C is being admitted for 1/5th of the total profits of the firm, so the remaining profit 1-1/5 i.e. 4/5th will be shared by A & B. A & B existing capital = 66000+34000 =100,000 Total proportionate capital of the firm should be 100000*5/4 =1,25,000 C will bring proportionate capital 125000*1/5 =25,000
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