📢 Too many exams? Don’t know which one suits you best? Book Your Free Expert 👉 call Now!

    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:
    A ₹ 29,000 Correct Answer Incorrect Answer
    B ₹ 22,500 Correct Answer Incorrect Answer
    C ₹ 24,000 Correct Answer Incorrect Answer
    D ₹ 25,000 Correct Answer Incorrect Answer

    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

    Practice Next
    More Accounts Questions

    Relevant for Exams:

    ask-question