Partnership_capital adjustment when new partner admision

A&B are partners in the ratio of 3:2. They joined C as a new partner new profit sharing ratio is 7:3:3.

Liabilities: A-40,000, B-2000, General Res-15,000, Creditors-10,000 

Assets: Freehold Premises-24,000, Plant-4,000, Stock-33,000, Debtors-12,000, Bank-7,000, P&L-5,000

Goodwill was valued 20,800. C was to bring required premium and Proportionate capital. Capital of A,B as between  themselves were also to be adjusted in their profit sharing ratio. Find out new partners capital and premium of goodwill in the new firm. 

Please give me answer to the above problem with brief calculation. Revaluation a/c is compulsory or not how to cal. new partner capital. hari.vemula83 @ hotmail.com

Replies (2)

Note : Capital mentioned in Balance Sheet for B is `20,000 and not `2,000

1. Revaluation A/C is not required as there is no revaluation of assests or liabilities.

2. Adjustment entry for Premimum for Goodwill is -

        C .... Dr. `4800 

             To A ....... `1280

             To B........ `3520

3.  Please check Quetion again I think there is some ommision or mistake in this line " Capital of A,B as between  themselves " or anything else is missing about Capital Adjustment....

add the opening capital of A and B +reserve+goodwill (20600*3/13) =40000(assumed )*13/10(1-3/13)

total capital of th firm =52000

then divide th capital in new psr7:3:3

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