Cpt
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
05 December 2014
Ramesh and suresh are partners sharing profits in the ratio of 2:1 (ramesh capital is Rs.1,02,000 and Suresh capital is Rs.73,000). They admitted mahesh & agreed to give him 1/5 in share. He brings Rs.14,000 as his share of goodwill . He agreed to contribute capital in profit sharing ratio. How much capital will be brought by incoming partner ?
Querist : Anonymous
Querist :
Anonymous
(Querist)
05 December 2014
Ramesh and suresh are partners sharing profits in the ratio of 2:1 (ramesh capital is Rs.1,02,000 and Suresh capital is Rs.73,000). They admitted mahesh & agreed to give him 1/5 in share. He brings Rs.14,000 as his share of goodwill . He agreed to contribute capital in profit sharing ratio. How much capital will be brought by incoming partner ?
20 July 2024
To determine how much capital Mahesh, the incoming partner, will bring, we need to calculate his capital contribution based on the profit sharing ratio agreed upon after his admission.
Let's break down the information given:
1. **Current Partners and Capital:**
- Ramesh's capital: Rs. 1,02,000
- Suresh's capital: Rs. 73,000
- Profit sharing ratio between Ramesh and Suresh: 2:1
2. **Admission of Mahesh:**
- Mahesh is admitted and will receive 1/5th share in the profits.
- Mahesh brings Rs. 14,000 as his share of goodwill.
- Mahesh will contribute capital in the profit sharing ratio.
3. **Determine Profit Sharing Ratio for Mahesh:**
- Total profit sharing ratio including Mahesh: 2 (Ramesh) : 1 (Suresh) : 1/5 (Mahesh)
- To express this in a common denominator:
- Ramesh : Suresh : Mahesh = 10 : 5 : 1
4. **Calculate Mahesh's Capital Contribution:**
- Since the capital is to be contributed in the agreed profit sharing ratio, Mahesh's capital contribution needs to be calculated based on the ratio 10 : 5 : 1.
- Total capital brought by Ramesh and Suresh = Rs. 1,02,000 + Rs. 73,000 = Rs. 1,75,000
- Let's calculate Mahesh's capital contribution:
- Total capital to be brought by all partners = Rs. 1,75,000 + Rs. 14,000 (Goodwill brought by Mahesh)
- Mahesh's share of capital = (1/5) * Total capital to be brought by all partners
- Mahesh's capital = (1/5) * (Rs. 1,75,000 + Rs. 14,000)
- Mahesh's capital = (1/5) * Rs. 1,89,000
- Mahesh's capital = Rs. 37,800
Therefore, Mahesh, the incoming partner, will contribute Rs. 37,800 as his share of capital into the partnership.
Let's break down the information given:
1. **Current Partners and Capital:**
- Ramesh's capital: Rs. 1,02,000
- Suresh's capital: Rs. 73,000
- Profit sharing ratio between Ramesh and Suresh: 2:1
2. **Admission of Mahesh:**
- Mahesh is admitted and will receive 1/5th share in the profits.
- Mahesh brings Rs. 14,000 as his share of goodwill.
- Mahesh will contribute capital in the profit sharing ratio.
3. **Determine Profit Sharing Ratio for Mahesh:**
- Total profit sharing ratio including Mahesh: 2 (Ramesh) : 1 (Suresh) : 1/5 (Mahesh)
- To express this in a common denominator:
- Ramesh : Suresh : Mahesh = 10 : 5 : 1
4. **Calculate Mahesh's Capital Contribution:**
- Since the capital is to be contributed in the agreed profit sharing ratio, Mahesh's capital contribution needs to be calculated based on the ratio 10 : 5 : 1.
- Total capital brought by Ramesh and Suresh = Rs. 1,02,000 + Rs. 73,000 = Rs. 1,75,000
- Let's calculate Mahesh's capital contribution:
- Total capital to be brought by all partners = Rs. 1,75,000 + Rs. 14,000 (Goodwill brought by Mahesh)
- Mahesh's share of capital = (1/5) * Total capital to be brought by all partners
- Mahesh's capital = (1/5) * (Rs. 1,75,000 + Rs. 14,000)
- Mahesh's capital = (1/5) * Rs. 1,89,000
- Mahesh's capital = Rs. 37,800
Therefore, Mahesh, the incoming partner, will contribute Rs. 37,800 as his share of capital into the partnership.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Depreciation Chart Companies Act
- GST Audit whether Govt Companies are exempt?
- PTRC Show Cause Notice on Email
- Accounting treatment of AMC alongwith the purchase of Laptop
- Capital Gail Exemption Certificate
- Unable to File TDS Q2 Return – New TRACES Portal Error
- Not ordinarily resident having partnership income in India and salary in USA is any form to filed be
- Taxation of crypto futures in India Fy 2026- 2027
- MSME disclosure and disallowance
- EPF ECR NEW RULES Sep 17th 2026
- GST Treatment of Purchases with GST Paid where Outward Supplies of Manufactured CattleFeed Exempt
- Expert Help Required for TDS Refund 100000 Through TRACES – AY 2022–23
- IMPORT PURCHASE ENTRY PASSED IN BOOKS OF ACCOUNT
- FAST DS 26 Undisclosed Foreign Asset Disclosure Scheme 2026
- Regime change
- Goods sold but invoice not issued
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- FAST-DS 2026 Under Tax Law - No recourse or support for person declaring via this scheme?
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
