mustration 27
B and Care partners in a firm sharing profits the ratio of 3:2:1. Dis admitted
to the firm for 1/4 share in profits, which he gets as 1/8 from A and 1/8 from
The total capital of the firm is agreed upon as Rs. 1,20,000 and D is to bring
cash equivalent to 1/4 of this amount as his capital. The capitals of other
artners are also to be adjusted in the ratio of their respective shares in profits.
he capitals of A, B ind C after all adjustments are Rs. 40,000, Rs. 35,000 and
30,000 respectively. Calculate the new capitals of A.B and C, and record the
ecessary journal entries.
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A, B and C are partners in the firm sharing profits and losses in the ratio of 3: 2: 1. D is admitted Into the firm with a 1/4th share in the profits which he gets as 1/8 from A and 1/8 from B. D is to bring in cash equivalent to 1/4 of the total capital of the new firm. The capitals of other partners are also to be adjusted In the ratio of their respective share in profit and loss. The respective capitals of A, B and C after all adjustments have been made, work out at Rs.20,000, Rs. 15,000 and Rs. 19,000 respectively. Calculate final capitals of A, B and C will be _________.
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