CA Foundation Exam  >  CA Foundation Questions  >  Amir and Anil are partners of a partnership f... Start Learning for Free
Amir and Anil are partners of a partnership firm sharing profits in the ratio of 5:3 with capitals of 2,50,000 and 2,00,000 respectively.Atul was admitted on the following terms . Atul would pay 50,000 as capital and 16,000 as goodeill for 1/10th share of profit. find the balance of capital accounts after admission of Atul options are (a) 2,60,000 ;2,06,000 ;NIL (b) 2,20,000 ;1,82,000 ;66,000 (c)2,92,500 ;2,25,000 ;50,000 (d)3,82,500 ;2,19,500 ;66,000?
Most Upvoted Answer
Amir and Anil are partners of a partnership firm sharing profits in th...
Solution:

Given, Amir and Anil are partners of a partnership firm sharing profits in the ratio of 5:3 with capitals of 2,50,000 and 2,00,000 respectively.

Step 1: Calculate the total capital of the firm before Atul's admission

Total capital = Amir's capital + Anil's capital
Total capital = 2,50,000 + 2,00,000 = 4,50,000

Step 2: Calculate the ratio of profit sharing after Atul's admission

Atul is admitted for a 1/10th share of profit. Hence, the remaining profit will be shared between Amir and Anil in the ratio of 5:3:1.

Step 3: Calculate Atul's share of profit

Atul's share of profit = Total profit * Atul's share
Atul's share of profit = Total profit * 1/10
Atul's share of profit = Total profit / 10

Step 4: Calculate Atul's total capital contribution

Atul's total capital contribution = Capital + Goodwill
Atul's total capital contribution = 50,000 + 16,000
Atul's total capital contribution = 66,000

Step 5: Calculate the new profit sharing ratio

The new profit sharing ratio will be 5:3:1:1 (Amir, Anil, Atul for capital and Atul for goodwill)

Step 6: Calculate the new capital contribution of Amir and Anil

Amir's new capital = Amir's old capital + Amir's share of profit
Amir's new capital = 2,50,000 + (5/10) * Total profit

Anil's new capital = Anil's old capital + Anil's share of profit
Anil's new capital = 2,00,000 + (3/10) * Total profit

Step 7: Calculate the total capital of the firm after Atul's admission

Total capital = Amir's new capital + Anil's new capital + Atul's total capital contribution
Total capital = (2,50,000 + (5/10) * Total profit) + (2,00,000 + (3/10) * Total profit) + 66,000
Total capital = 4,50,000 + (8/10) * Total profit + 66,000

Step 8: Equate the total capital before and after Atul's admission

4,50,000 = 4,50,000 + (8/10) * Total profit + 66,000
(8/10) * Total profit = 0
Total profit = 0

Since the total profit is zero, the new capital contribution of Amir and Anil will be the same as their old capital contribution.

Therefore, the balance of capital accounts after admission of Atul will be:

Amir's capital = 2,50,000
Anil's capital = 2,00,000
Atul's capital = 50,000
Total capital = 5,00,000

Option (c) 2,92,500 ;2,25,000 ;50,000 is incorrect as the total capital after Atul's admission is 5,00,000 and not 5,67,500.

H
Community Answer
Amir and Anil are partners of a partnership firm sharing profits in th...
Yes ,options are absolutely correct and according to my scanner the answer is (a) although I have no idea how Atul capital became nil
Explore Courses for CA Foundation exam

Similar CA Foundation Doubts

Amir and Anil are partners of a partnership firm sharing profits in the ratio of 5:3 with capitals of 2,50,000 and 2,00,000 respectively.Atul was admitted on the following terms . Atul would pay 50,000 as capital and 16,000 as goodeill for 1/10th share of profit. find the balance of capital accounts after admission of Atul options are (a) 2,60,000 ;2,06,000 ;NIL (b) 2,20,000 ;1,82,000 ;66,000 (c)2,92,500 ;2,25,000 ;50,000 (d)3,82,500 ;2,19,500 ;66,000?
Question Description
Amir and Anil are partners of a partnership firm sharing profits in the ratio of 5:3 with capitals of 2,50,000 and 2,00,000 respectively.Atul was admitted on the following terms . Atul would pay 50,000 as capital and 16,000 as goodeill for 1/10th share of profit. find the balance of capital accounts after admission of Atul options are (a) 2,60,000 ;2,06,000 ;NIL (b) 2,20,000 ;1,82,000 ;66,000 (c)2,92,500 ;2,25,000 ;50,000 (d)3,82,500 ;2,19,500 ;66,000? 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 Amir and Anil are partners of a partnership firm sharing profits in the ratio of 5:3 with capitals of 2,50,000 and 2,00,000 respectively.Atul was admitted on the following terms . Atul would pay 50,000 as capital and 16,000 as goodeill for 1/10th share of profit. find the balance of capital accounts after admission of Atul options are (a) 2,60,000 ;2,06,000 ;NIL (b) 2,20,000 ;1,82,000 ;66,000 (c)2,92,500 ;2,25,000 ;50,000 (d)3,82,500 ;2,19,500 ;66,000? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Amir and Anil are partners of a partnership firm sharing profits in the ratio of 5:3 with capitals of 2,50,000 and 2,00,000 respectively.Atul was admitted on the following terms . Atul would pay 50,000 as capital and 16,000 as goodeill for 1/10th share of profit. find the balance of capital accounts after admission of Atul options are (a) 2,60,000 ;2,06,000 ;NIL (b) 2,20,000 ;1,82,000 ;66,000 (c)2,92,500 ;2,25,000 ;50,000 (d)3,82,500 ;2,19,500 ;66,000?.
Solutions for Amir and Anil are partners of a partnership firm sharing profits in the ratio of 5:3 with capitals of 2,50,000 and 2,00,000 respectively.Atul was admitted on the following terms . Atul would pay 50,000 as capital and 16,000 as goodeill for 1/10th share of profit. find the balance of capital accounts after admission of Atul options are (a) 2,60,000 ;2,06,000 ;NIL (b) 2,20,000 ;1,82,000 ;66,000 (c)2,92,500 ;2,25,000 ;50,000 (d)3,82,500 ;2,19,500 ;66,000? in English & in Hindi are available as part of our courses for CA Foundation. Download more important topics, notes, lectures and mock test series for CA Foundation Exam by signing up for free.
Here you can find the meaning of Amir and Anil are partners of a partnership firm sharing profits in the ratio of 5:3 with capitals of 2,50,000 and 2,00,000 respectively.Atul was admitted on the following terms . Atul would pay 50,000 as capital and 16,000 as goodeill for 1/10th share of profit. find the balance of capital accounts after admission of Atul options are (a) 2,60,000 ;2,06,000 ;NIL (b) 2,20,000 ;1,82,000 ;66,000 (c)2,92,500 ;2,25,000 ;50,000 (d)3,82,500 ;2,19,500 ;66,000? defined & explained in the simplest way possible. Besides giving the explanation of Amir and Anil are partners of a partnership firm sharing profits in the ratio of 5:3 with capitals of 2,50,000 and 2,00,000 respectively.Atul was admitted on the following terms . Atul would pay 50,000 as capital and 16,000 as goodeill for 1/10th share of profit. find the balance of capital accounts after admission of Atul options are (a) 2,60,000 ;2,06,000 ;NIL (b) 2,20,000 ;1,82,000 ;66,000 (c)2,92,500 ;2,25,000 ;50,000 (d)3,82,500 ;2,19,500 ;66,000?, a detailed solution for Amir and Anil are partners of a partnership firm sharing profits in the ratio of 5:3 with capitals of 2,50,000 and 2,00,000 respectively.Atul was admitted on the following terms . Atul would pay 50,000 as capital and 16,000 as goodeill for 1/10th share of profit. find the balance of capital accounts after admission of Atul options are (a) 2,60,000 ;2,06,000 ;NIL (b) 2,20,000 ;1,82,000 ;66,000 (c)2,92,500 ;2,25,000 ;50,000 (d)3,82,500 ;2,19,500 ;66,000? has been provided alongside types of Amir and Anil are partners of a partnership firm sharing profits in the ratio of 5:3 with capitals of 2,50,000 and 2,00,000 respectively.Atul was admitted on the following terms . Atul would pay 50,000 as capital and 16,000 as goodeill for 1/10th share of profit. find the balance of capital accounts after admission of Atul options are (a) 2,60,000 ;2,06,000 ;NIL (b) 2,20,000 ;1,82,000 ;66,000 (c)2,92,500 ;2,25,000 ;50,000 (d)3,82,500 ;2,19,500 ;66,000? theory, EduRev gives you an ample number of questions to practice Amir and Anil are partners of a partnership firm sharing profits in the ratio of 5:3 with capitals of 2,50,000 and 2,00,000 respectively.Atul was admitted on the following terms . Atul would pay 50,000 as capital and 16,000 as goodeill for 1/10th share of profit. find the balance of capital accounts after admission of Atul options are (a) 2,60,000 ;2,06,000 ;NIL (b) 2,20,000 ;1,82,000 ;66,000 (c)2,92,500 ;2,25,000 ;50,000 (d)3,82,500 ;2,19,500 ;66,000? tests, examples and also practice CA Foundation tests.
Explore Courses for CA Foundation exam

Top Courses for CA Foundation

Explore Courses
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
10M+ students study on EduRev