Save Rs 499. Go Ad-Free with CAclubindia Pro for 2 Full Years. Subscribe Now!

CPT Problem Partnership

1279 views 5 replies

RANGARAM S

IPCC Student/Share Trading

155 Points Posted on 23 June 2009

Hi ,

I have the following problem to be solved :

A & B who share the profits and losses in the ratio of 3:2 has the following balances Capital of A Rs. 50,000 Capital of B Rs. 30,000 Reserve Fund Rs. 15,000 . They admit C as a partner who contributes to the firm Rs.25,000 for 1/6th share in the partnership. If C is to purchase 1/6th share in the parnership from the existing partners A and B in the ratio of 3:2 for Rs. 25000. Find the closing capital of C.

a)Rs.25,000

b)Rs 19,000

c) Rs. 20,000

d) Rs. 18,000

Please explain the answer.

Thanks in advance.

Replies (5)

The Dude

Specialist- Finance

303 Points Posted on 23 June 2009

Is the answer 19000?

CA Paras jain

Audit Senior Assistant

1544 Points Posted on 23 June 2009

answer is 19000..

vijay

self

73 Points Posted on 23 June 2009

owner's fund befor admission is 95000(50000+30000+15000) new partner is for 1/6 shares it means for 5/6(1-1/6) old partners has 95000 so for 1/6 share should be 95000*6/5*1/6=19000 but in new edition of study notes the answer is given 20000 it is solved as firms total capital on the basis of new partner share is 25000*6=150000 and firms capitals after admission is 95000+25000 so goodwill =150000-120000=30000 and c's share is 5000 and his capital would be 25000-20000=5000 the right answer is 19000 only. there is so many mistakes in study notes provided by institution and nobody is there to take care of