Question

Capital A/c of all partners be adjusted in their new profit sharing ratio through cash ac-
count. how to I solve this adjustment ​

Answer 1

Answer:

The new partner may be required to bring proportionate capital for his share of profit. New partner’s capital is calculated on the basis of the capital of the reconstituted firm or on the basis of combined capitals of the old partners for their share of profit.

Explanation:

partners account- debit side

cash account- credit side