Please anyone can explain me meaning of following statemenent
"It was decided that the total capital of the firm after admission of new partner would be Rs10,00,000.capital account of partner will be readjusted on the basis of their profit sharing ratio and excess or defiency will be adjusted in cash"
Thanks in advance >>>>>>>>>
HELLOO....friend
total capital of firm will be 10lakh All the partner maintain capital in there profit sharing ration
E-xample A,B,C are three partner and firm capital 10 lakh and profit sharing ratio 2 :2:1
So capital required to maintain by Partners.. A= 4 lakh B= 4 Lakh C= 2 lakh
excess or defiency will be adjusted in cash" MEANS:
- Example:- before addmition partners capital was A= 3 lakh B= 6 lakh
So A will bring 1 lakh more in cash B will withdraw 2 lakh in cash c will bring 2 lakh in cash
THANKS
SHIKHAR
CAclubindia
