Question : A, B and C are partners in a firm sharing profits and losses in the ratio of 3: 2: 1. D is admitted as a new partner for 1/4 share in the profits of the firm, which he gets 1/8 from A, and 1/16 each from B and C. The total capital of the new firm after D's admission will be Rs. 2,40,000. D is required to bring in cash equal to 1/4 of the total capital of the new firm. The capitals of the old partners also have to be adjusted in proportion of their profit sharing ratio. The capitals of A, B and C after all adjustments in respect of goodwill and revaluation of assets and liabilities have been made are A Rs. 80,000 , B Rs. 30,000 and C Rs. 28,000 . Calculate the capitals of all the partners and record the necessary journal entries for doing adjustments in respect of capitals according to the agreement between the partners.
Option 1: A will bring Rs 10,000 , B brings Rs 35,000 and C withdrawn 3000
Option 2: A will bring Rs 10,000 and B withdrew Rs 35,000 and C bring Rs 3,000
Option 3: A bring Rs 10,000 and B withdrew Rs 35,000 and C withdrew Rs 3,000
Option 4: None of the above
Correct Answer: A will bring Rs 10,000 , B brings Rs 35,000 and C withdrawn 3000
Solution : Answer = A will bring Rs 10,000 , B brings Rs 35,000 and C withdrawn 3000
A = $\frac{3}{6} - \frac{1}{8} of \frac{2}{16} = \frac{3}{6}-\frac{2}{16} = \frac{48-12}{96} = \frac{36}{96}\times 2,40,000 = 90,000$
B = $\frac{2}{6} - \frac{1}{16} = \frac{32-6}{96} = \frac{26}{96}\times 2,40,000 = 65,000$
C = $\frac{1}{6} - \frac{1}{16} = \frac{16-6}{96} = \frac{10}{96}\times 2,40,000 = 25,000$
D = \frac{1}{6}\times 2,40,000 = 60,000$
| A | B | C | A | B | C | ||
| To Bank | - | - | 3,000 | By Bal. B/D | 80,000 | 30,000 | 28,000 |
| Bal. C/D | 90,000 | 65,000 | 25,000 | By Bank(B/A) | 10,000 | 35,000 |
- |
Bank A/c Dr 45000
To A's Capital A/c 10,000
To B's Capital A/c 35000
C's Capital A/c Dr 3000
To Bank - 3000
Hence, the correct option is 1.
