Question

A & B are partners sharing in the ratio of 3:2. Their capitals after all necessary
adjustment are Rs 30000 & Rs 20000 resp. C is admitted for 1/5th share & he brings
Rs 20000 as his capital but is not able to bring his share of goodwill in cash. Firm’s
goodwill is valued at Rs 20000. Capital of the partners is to be readjusted on the
basis of profit sharing ratio. Calculate the capitals of the partners & the amount of
cash deficiency / surplus.

Answer 1

Answer:

Cash deficiency = 15000+10000 = 25000

New capital of partners

A 48000

B 32000

C 20000

Explanation:

WN 1 C`s share of goodwill - 20000*1/5 = 5000

Premium of Goodwill acc Dr 5000

To A` capital acc 3000

To b` capital acc 2000

WN 2 total capital of the firm = 5 * 20000 = 100000

NPSR = 12:8:5

A new capital = 12/25 * 100000 = 48000

adjusted - new = 33000-48000 = 15000 [deficit]

B new capital = 8/25* 100000 =32000

adjusted - new = 22000 -32000 = 10000 [deficit]