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A and B are partners sharing profits and losses in the ratio 3:2 .Their Balance sheet as follows.Cwas admitted as a new partner and brought ₹64000as his capital and 15000 for his share of goodwill.?
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A and B are partners sharing profits and losses in the ratio 3:2 .Thei...
Balance Sheet of A and B
Liabilities Amount Assets Amount
Capital
A 90000 Cash 20000
B 60000 Debtors 30000
Stock 40000
Plant 50000
Goodwill 30000
Total 170000 Total 170000
Explanation:
Admission of C as a New Partner
When C is admitted as a new partner, the balance sheet of the firm will undergo changes. The following adjustments will be made in the balance sheet to account for C's admission.
C's Capital Contribution
C has brought ₹64000 as his capital, which will be credited to the capital account in the balance sheet.
Goodwill
C has also contributed ₹15000 for his share of goodwill. The existing goodwill of the firm was valued at ₹30000 in the balance sheet. Therefore, the total goodwill of the firm after C's admission will be ₹45000.
Adjustment of Profit Sharing Ratio
The new profit sharing ratio of the partners will be determined after C's admission. The existing profit sharing ratio between A and B is 3:2. Let us assume that the new profit sharing ratio between A, B, and C is x:y:z.
The total profit sharing ratio of the partners will be x + y + z. As C has been admitted as a new partner, his share of profit will be determined based on his capital contribution and share of goodwill. Let us assume that C's share of profit is p.
Therefore, we can write the following equation:
3x : 2y = (64000 + 15000)/170000 : p
Solving the equation, we get:
x:y:p = 4:3:1
Therefore, the new profit sharing ratio between A, B, and C will be 4:3:1.
Adjustment of Capital Accounts
After C's admission, the capital accounts of A, B, and C will be adjusted based on their new profit sharing ratio. The following adjustments will be made:
A's Capital Account = (3/8) * Total Capital - Goodwill
B's Capital Account = (2/8) * Total Capital - Goodwill
C's Capital Account = (1/8) * Total Capital - Goodwill + Capital Contribution
Conclusion:
In conclusion, when C is admitted as a new partner, the balance sheet of the firm will undergo changes, including the adjustment of capital accounts, valuation of goodwill, and determination of the new profit sharing ratio.
Liabilities Amount Assets Amount
Capital
A 90000 Cash 20000
B 60000 Debtors 30000
Stock 40000
Plant 50000
Goodwill 30000
Total 170000 Total 170000
Explanation:
Admission of C as a New Partner
When C is admitted as a new partner, the balance sheet of the firm will undergo changes. The following adjustments will be made in the balance sheet to account for C's admission.
C's Capital Contribution
C has brought ₹64000 as his capital, which will be credited to the capital account in the balance sheet.
Goodwill
C has also contributed ₹15000 for his share of goodwill. The existing goodwill of the firm was valued at ₹30000 in the balance sheet. Therefore, the total goodwill of the firm after C's admission will be ₹45000.
Adjustment of Profit Sharing Ratio
The new profit sharing ratio of the partners will be determined after C's admission. The existing profit sharing ratio between A and B is 3:2. Let us assume that the new profit sharing ratio between A, B, and C is x:y:z.
The total profit sharing ratio of the partners will be x + y + z. As C has been admitted as a new partner, his share of profit will be determined based on his capital contribution and share of goodwill. Let us assume that C's share of profit is p.
Therefore, we can write the following equation:
3x : 2y = (64000 + 15000)/170000 : p
Solving the equation, we get:
x:y:p = 4:3:1
Therefore, the new profit sharing ratio between A, B, and C will be 4:3:1.
Adjustment of Capital Accounts
After C's admission, the capital accounts of A, B, and C will be adjusted based on their new profit sharing ratio. The following adjustments will be made:
A's Capital Account = (3/8) * Total Capital - Goodwill
B's Capital Account = (2/8) * Total Capital - Goodwill
C's Capital Account = (1/8) * Total Capital - Goodwill + Capital Contribution
Conclusion:
In conclusion, when C is admitted as a new partner, the balance sheet of the firm will undergo changes, including the adjustment of capital accounts, valuation of goodwill, and determination of the new profit sharing ratio.
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A and B are partners sharing profits and losses in the ratio 3:2 .Their Balance sheet as follows.Cwas admitted as a new partner and brought ₹64000as his capital and 15000 for his share of goodwill.?
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A and B are partners sharing profits and losses in the ratio 3:2 .Their Balance sheet as follows.Cwas admitted as a new partner and brought ₹64000as his capital and 15000 for his share of goodwill.? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about A and B are partners sharing profits and losses in the ratio 3:2 .Their Balance sheet as follows.Cwas admitted as a new partner and brought ₹64000as his capital and 15000 for his share of goodwill.? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A and B are partners sharing profits and losses in the ratio 3:2 .Their Balance sheet as follows.Cwas admitted as a new partner and brought ₹64000as his capital and 15000 for his share of goodwill.?.
A and B are partners sharing profits and losses in the ratio 3:2 .Their Balance sheet as follows.Cwas admitted as a new partner and brought ₹64000as his capital and 15000 for his share of goodwill.? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about A and B are partners sharing profits and losses in the ratio 3:2 .Their Balance sheet as follows.Cwas admitted as a new partner and brought ₹64000as his capital and 15000 for his share of goodwill.? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A and B are partners sharing profits and losses in the ratio 3:2 .Their Balance sheet as follows.Cwas admitted as a new partner and brought ₹64000as his capital and 15000 for his share of goodwill.?.
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