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A,B and C were in partnership, sharing profits and losses as to A one- and cone - sixth. As from 14 January, 2016 they admitted Dinto partnership on the following terms: D to have a one - sixth share which he purchased entirely from a paying AP 3,000 for that share of goodwill of this amount, A had withdrawn 6,000 and put the balance in the firm as additional capital. As a condition?
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A,B and C were in partnership, sharing profits and losses as to A one-...
Solution:

Calculation of New Profit Sharing Ratio:
- A's share = 1/6
- B's share = 1/6
- C's share = 4/6
- Total = 1/6 + 1/6 + 4/6 = 1

After admitting D, the new profit sharing ratio will be:
- A's share = 1/6
- B's share = 1/6
- C's share = 4/6 x 5/6 = 20/36
- D's share = 1/6 x 5/6 = 5/36

Goodwill Amount:
D purchased 1/6 share for 3,000
Therefore, the total value of goodwill = 3,000 x 6 = 18,000

Adjustment for A's Withdrawal:
A had withdrawn 6,000 from the firm and put the balance in the firm as additional capital.
Therefore, A's capital contribution after the adjustment = (1/6 x 18,000) - 6,000 + (5/6 x 18,000) = 9,000

New Capital Balances:
- A = 9,000
- B = (1/6 x 18,000) = 3,000
- C = (4/6 x 18,000) = 12,000
- D = (1/6 x 18,000) = 3,000

Conclusion:
- The new profit sharing ratio after admitting D is 1:1:20/36:5/36.
- The total value of goodwill is 18,000.
- A's capital contribution after the adjustment is 9,000.
- The new capital balances are A = 9,000, B = 3,000, C = 12,000, and D = 3,000.
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A,B and C were in partnership, sharing profits and losses as to A one- and cone - sixth. As from 14 January, 2016 they admitted Dinto partnership on the following terms: D to have a one - sixth share which he purchased entirely from a paying AP 3,000 for that share of goodwill of this amount, A had withdrawn 6,000 and put the balance in the firm as additional capital. As a condition?
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A,B and C were in partnership, sharing profits and losses as to A one- and cone - sixth. As from 14 January, 2016 they admitted Dinto partnership on the following terms: D to have a one - sixth share which he purchased entirely from a paying AP 3,000 for that share of goodwill of this amount, A had withdrawn 6,000 and put the balance in the firm as additional capital. As a condition? 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 A,B and C were in partnership, sharing profits and losses as to A one- and cone - sixth. As from 14 January, 2016 they admitted Dinto partnership on the following terms: D to have a one - sixth share which he purchased entirely from a paying AP 3,000 for that share of goodwill of this amount, A had withdrawn 6,000 and put the balance in the firm as additional capital. As a condition? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A,B and C were in partnership, sharing profits and losses as to A one- and cone - sixth. As from 14 January, 2016 they admitted Dinto partnership on the following terms: D to have a one - sixth share which he purchased entirely from a paying AP 3,000 for that share of goodwill of this amount, A had withdrawn 6,000 and put the balance in the firm as additional capital. As a condition?.
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