Question

Hari, Shankar and Raman were partners sharing profits in the ratio of 3:2:1 .Kamal was admitted for 2/5th share and on the same date Karan was also admitted for 1/5 th share. What will be the treatment of advertisement suspense A/c appearing in the books at Rs, 1,20, 000?

Answer 1

Hari 's capital A/c. dr. 60,000

Shankar's capital A/c dr. 40,000

Raman's capital A/c. dr. 20,000

To advertisement

suspense A/C. 1,20,000

(Adv suspense is an accumulated loss hence debited from partner's capital accounts)

This has nothing to do with the new partners because adv suspense occurred in the previous year and the new partners are admitted in the current year. New partners will get share in profits and losses from the current year .