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A & B are partners in the ratio of 3:2. They admitted C as a new partner with Rs.35,000 against his capital and Rs.15,000 against goodwill. C could bring in Rs.45,000 only. What is the treatment, if the new profit sharing ratio is 1:1:1?
- a)A & B will be credited by Rs.8,000 and Rs.2,000 respectively
- b)A further amount of Rs.5,000 is credited to capital accounts of A & B
- c)Both (a) & (b)
- d)None of the above
Correct answer is option 'C'. Can you explain this answer?
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A B are partners in the ratio of 3:2. They admitted C as a new partne...
Treatment of Admission of C as Partner in A:B:C Partnership
Given Data:
Ratio of A:B = 3:2
C invested Rs. 35,000 as capital and Rs. 15,000 as goodwill, but he could bring only Rs. 45,000.
Calculation of New Ratio:
Total investment = 3x + 2x + 35,000 + 15,000 = 5x + 50,000
New ratio = 1:1:1
So, the share of each partner = (5x + 50,000)/3
A's share = 1/3 * (5x + 50,000) = 5x/3 + 16,667
B's share = 1/3 * (5x + 50,000) = 5x/3 + 16,667
C's share = 1/3 * (5x + 50,000) = 5x/3 + 16,667
Calculation of C's Investment:
C invested Rs. 35,000 as capital and Rs. 15,000 as goodwill, but he could bring only Rs. 45,000.
So, the shortfall in C's investment = 35,000 + 15,000 - 45,000 = 5,000
This shortfall will be borne by A and B in their profit sharing ratio of 3:2.
A's share of shortfall = 3/5 * 5,000 = 3,000
B's share of shortfall = 2/5 * 5,000 = 2,000
Treatment:
As per the given data and calculations, the treatment of admission of C as a partner in A:B:C partnership with a new profit sharing ratio of 1:1:1 will be:
a) A and B will be credited by Rs. 8,000 and Rs. 2,000 respectively to adjust for C's shortfall in investment.
b) A further amount of Rs. 5,000 will be credited to the capital accounts of A and B in their profit sharing ratio of 3:2.
Therefore, the correct answer is option (c) - Both (a) and (b).
Given Data:
Ratio of A:B = 3:2
C invested Rs. 35,000 as capital and Rs. 15,000 as goodwill, but he could bring only Rs. 45,000.
Calculation of New Ratio:
Total investment = 3x + 2x + 35,000 + 15,000 = 5x + 50,000
New ratio = 1:1:1
So, the share of each partner = (5x + 50,000)/3
A's share = 1/3 * (5x + 50,000) = 5x/3 + 16,667
B's share = 1/3 * (5x + 50,000) = 5x/3 + 16,667
C's share = 1/3 * (5x + 50,000) = 5x/3 + 16,667
Calculation of C's Investment:
C invested Rs. 35,000 as capital and Rs. 15,000 as goodwill, but he could bring only Rs. 45,000.
So, the shortfall in C's investment = 35,000 + 15,000 - 45,000 = 5,000
This shortfall will be borne by A and B in their profit sharing ratio of 3:2.
A's share of shortfall = 3/5 * 5,000 = 3,000
B's share of shortfall = 2/5 * 5,000 = 2,000
Treatment:
As per the given data and calculations, the treatment of admission of C as a partner in A:B:C partnership with a new profit sharing ratio of 1:1:1 will be:
a) A and B will be credited by Rs. 8,000 and Rs. 2,000 respectively to adjust for C's shortfall in investment.
b) A further amount of Rs. 5,000 will be credited to the capital accounts of A and B in their profit sharing ratio of 3:2.
Therefore, the correct answer is option (c) - Both (a) and (b).
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A B are partners in the ratio of 3:2. They admitted C as a new partner with Rs.35,000 against his capital and Rs.15,000 against goodwill. C could bring in Rs.45,000 only. What is the treatment, if the new profit sharing ratio is 1:1:1?a)A B will be credited by Rs.8,000 and Rs.2,000 respectivelyb)A further amount of Rs.5,000 is credited to capital accounts of A Bc)Both (a) (b)d)None of the aboveCorrect answer is option 'C'. Can you explain this answer?
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A B are partners in the ratio of 3:2. They admitted C as a new partner with Rs.35,000 against his capital and Rs.15,000 against goodwill. C could bring in Rs.45,000 only. What is the treatment, if the new profit sharing ratio is 1:1:1?a)A B will be credited by Rs.8,000 and Rs.2,000 respectivelyb)A further amount of Rs.5,000 is credited to capital accounts of A Bc)Both (a) (b)d)None of the aboveCorrect answer is option 'C'. Can you explain this answer? for CA CPT 2024 is part of CA CPT preparation. The Question and answers have been prepared according to the CA CPT exam syllabus. Information about A B are partners in the ratio of 3:2. They admitted C as a new partner with Rs.35,000 against his capital and Rs.15,000 against goodwill. C could bring in Rs.45,000 only. What is the treatment, if the new profit sharing ratio is 1:1:1?a)A B will be credited by Rs.8,000 and Rs.2,000 respectivelyb)A further amount of Rs.5,000 is credited to capital accounts of A Bc)Both (a) (b)d)None of the aboveCorrect answer is option 'C'. Can you explain this answer? covers all topics & solutions for CA CPT 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A B are partners in the ratio of 3:2. They admitted C as a new partner with Rs.35,000 against his capital and Rs.15,000 against goodwill. C could bring in Rs.45,000 only. What is the treatment, if the new profit sharing ratio is 1:1:1?a)A B will be credited by Rs.8,000 and Rs.2,000 respectivelyb)A further amount of Rs.5,000 is credited to capital accounts of A Bc)Both (a) (b)d)None of the aboveCorrect answer is option 'C'. Can you explain this answer?.
A B are partners in the ratio of 3:2. They admitted C as a new partner with Rs.35,000 against his capital and Rs.15,000 against goodwill. C could bring in Rs.45,000 only. What is the treatment, if the new profit sharing ratio is 1:1:1?a)A B will be credited by Rs.8,000 and Rs.2,000 respectivelyb)A further amount of Rs.5,000 is credited to capital accounts of A Bc)Both (a) (b)d)None of the aboveCorrect answer is option 'C'. Can you explain this answer? for CA CPT 2024 is part of CA CPT preparation. The Question and answers have been prepared according to the CA CPT exam syllabus. Information about A B are partners in the ratio of 3:2. They admitted C as a new partner with Rs.35,000 against his capital and Rs.15,000 against goodwill. C could bring in Rs.45,000 only. What is the treatment, if the new profit sharing ratio is 1:1:1?a)A B will be credited by Rs.8,000 and Rs.2,000 respectivelyb)A further amount of Rs.5,000 is credited to capital accounts of A Bc)Both (a) (b)d)None of the aboveCorrect answer is option 'C'. Can you explain this answer? covers all topics & solutions for CA CPT 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A B are partners in the ratio of 3:2. They admitted C as a new partner with Rs.35,000 against his capital and Rs.15,000 against goodwill. C could bring in Rs.45,000 only. What is the treatment, if the new profit sharing ratio is 1:1:1?a)A B will be credited by Rs.8,000 and Rs.2,000 respectivelyb)A further amount of Rs.5,000 is credited to capital accounts of A Bc)Both (a) (b)d)None of the aboveCorrect answer is option 'C'. Can you explain this answer?.
Solutions for A B are partners in the ratio of 3:2. They admitted C as a new partner with Rs.35,000 against his capital and Rs.15,000 against goodwill. C could bring in Rs.45,000 only. What is the treatment, if the new profit sharing ratio is 1:1:1?a)A B will be credited by Rs.8,000 and Rs.2,000 respectivelyb)A further amount of Rs.5,000 is credited to capital accounts of A Bc)Both (a) (b)d)None of the aboveCorrect answer is option 'C'. Can you explain this answer? in English & in Hindi are available as part of our courses for CA CPT.
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ample number of questions to practice A B are partners in the ratio of 3:2. They admitted C as a new partner with Rs.35,000 against his capital and Rs.15,000 against goodwill. C could bring in Rs.45,000 only. What is the treatment, if the new profit sharing ratio is 1:1:1?a)A B will be credited by Rs.8,000 and Rs.2,000 respectivelyb)A further amount of Rs.5,000 is credited to capital accounts of A Bc)Both (a) (b)d)None of the aboveCorrect answer is option 'C'. Can you explain this answer? tests, examples and also practice CA CPT tests.
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