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Amit and Anil are partners sharing profit in the ratio of 5 : 3 with capital of Rs. 2,50,000 and Rs. 2,00,000. Atul was admitted and would pay Rs. 50,000 as capital and Rs. 16,000 as goodwill for 1/5th profit. Find the balance of capital account after admission of Atul?
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Amit and Anil are partners sharing profit in the ratio of 5 : 3 with c...
Calculation of Profit Sharing Ratio:

  • Amit's capital = Rs. 2,50,000

  • Anil's capital = Rs. 2,00,000

  • Total capital = Rs. 4,50,000

  • Amit's share in profit = 5/8

  • Anil's share in profit = 3/8



Calculation of Atul's Share in Profit:

  • Atul's capital = Rs. 50,000

  • Atul's goodwill = Rs. 16,000

  • Total capital after Atul's admission = Rs. 5,16,000

  • Atul's share in profit = 1/5

  • Atul's share in profit = (1/5) * Total profit

  • Atul's share in profit = (1/5) * (Total capital after Atul's admission - Total capital before Atul's admission)

  • Atul's share in profit = (1/5) * (Rs. 5,16,000 - Rs. 4,50,000)

  • Atul's share in profit = Rs. 13,200



Calculation of New Profit Sharing Ratio:

  • Total profit = Rs. (5/8 + 3/8) * Total capital before Atul's admission = Rs. 1,75,000

  • New profit sharing ratio = (5/8 + 3/8 + 1/5) : (5/8 + 3/8)

  • New profit sharing ratio = 43 : 35



Calculation of Balance of Capital Account:

  • Amit's new capital = Rs. 2,50,000 * (43/78) = Rs. 1,37,179

  • Anil's new capital = Rs. 2,00,000 * (35/78) = Rs. 89,744

  • Atul's capital = Rs. 50,000

  • Balance of capital account = Amit's new capital + Anil's new capital + Atul's capital

  • Balance of capital account = Rs. 1,37,179 + Rs. 89,744 + Rs. 50,000

  • Balance of capital account = Rs. 2,76,923



Therefore, the balance of capital account after admission of Atul is Rs. 2,76,923.
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Amit and Anil are partners sharing profit in the ratio of 5 : 3 with capital of Rs. 2,50,000 and Rs. 2,00,000. Atul was admitted and would pay Rs. 50,000 as capital and Rs. 16,000 as goodwill for 1/5th profit. Find the balance of capital account after admission of Atul?
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Amit and Anil are partners sharing profit in the ratio of 5 : 3 with capital of Rs. 2,50,000 and Rs. 2,00,000. Atul was admitted and would pay Rs. 50,000 as capital and Rs. 16,000 as goodwill for 1/5th profit. Find the balance of capital account after admission of Atul? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about Amit and Anil are partners sharing profit in the ratio of 5 : 3 with capital of Rs. 2,50,000 and Rs. 2,00,000. Atul was admitted and would pay Rs. 50,000 as capital and Rs. 16,000 as goodwill for 1/5th profit. Find the balance of capital account after admission of Atul? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Amit and Anil are partners sharing profit in the ratio of 5 : 3 with capital of Rs. 2,50,000 and Rs. 2,00,000. Atul was admitted and would pay Rs. 50,000 as capital and Rs. 16,000 as goodwill for 1/5th profit. Find the balance of capital account after admission of Atul?.
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