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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)

Aashok Kumar Sharma online

Aashok Kumar Sharma online

(Expert)
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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.

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