Question

if new partner has to bring proportionate capital which is not given , how can it be determined ?

Answer 1

Answer:

New Partner's Capital =Total capital of new firm x New partner's proportion of share of profit.

Explanation:

When the capital of new accomplice is not noted then his/her capital is ascertained on the proportionate foundation of overall capital of the company. the amount ascertained is to be delivered in by means of the new companion inside the form of his/her portion of capital. This technique is likewise known as as proportionate capital method.

For determining the quantity by way of which the capital of every companion is in extra of his relative capital, companions' capitals are first divided by means of figures that are in percentage to their income-sharing ratio; the smallest quotient will imply the basic capital. Proportionate capital means the partners brings the share of the capital required...!!

To discover the adjustment of capital definitely add the ADJUSTED capitals of all partners and multiply with the RECIPROCAL OF the overall proportion of the companions and afterwards the amount which you obtain is the total capital of the company...!

Once in a while, at the time of admission, the companions agree that their capitals must also be adjusted so one can be proportionate to their income sharing ratio. In any such situation, if the capital of the new associate is given, the equal can be used as a base for calculating the brand new capitals of the old partners.

if new partner has to bring proportionate capital which is not given , how can it be determined ?

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If new partner brings in proportionate capital, how can it be calculated ? Give a suitable example.

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