CPT - Partnership Admission (ICAI Study Material)
This query is : Resolved
RANGARAM S
(Querist)
16 November 2008
Amit & Anil are partners of a partnership firm Sharing profits in the ratio 5:3 with capital of Rs. 2,50,000 & Rs. 2,00,000 respectively. Atul was admitted on the following terms: Atul would pay Rs.50,000 as capital and Rs. 16,000 as Goodwill for 1/5th share of profit. Find the balance of Capital accounts after admission of Atul.
a) 2,30,000:1,88,000:50,000
b) 2,20,000:1,82,000:66,000
c) 2,92,500:2,25,500:50,000
d) 2,82,500:2,19,500:66,000
Answer - a) as per ICAI Study Material.
Please explain how the old partners capital can be decreased on admission, if the answer given is correct.
a) 2,30,000:1,88,000:50,000
b) 2,20,000:1,82,000:66,000
c) 2,92,500:2,25,500:50,000
d) 2,82,500:2,19,500:66,000
Answer - a) as per ICAI Study Material.
Please explain how the old partners capital can be decreased on admission, if the answer given is correct.
16 January 2009
Both partners are sacrificing their share. i.e. they shared in 60:40. Now they will sacrifice equally. i.e. 20% of new partner will come from 10% each.
Thus they will share 50:30:20.
Hence their capital will decrease proportionatley.
ICAI answer is right.
Thus they will share 50:30:20.
Hence their capital will decrease proportionatley.
ICAI answer is right.
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