A& B, who share profit and losses in the ratio of 3:2 has the following balances: capital of A Rs50000 and B Rs 30000; Reserve fund Rs 15000. they admit C as a partner, who contributes to the firm Rs 25000 for 1/6th share in the partnership. if C is to purchase 1/6th share in the partnership from the existing partners A&B in the ratio of 3:2 for Rs 25000, find closing capital of C.
A. RS 25000
B. RS 19000
C.RS 20000
D.RS 18000
ANY ONE CAN ANSWER THIS QUESTION
CA Paras jain
(Audit Senior Assistant)
(1544 Points)
Replied 20 November 2009
total capital of new firm acc to C'share is
25000*6/1 = 150000
now, 150000- A's cap- B's cap- reserve- C's cap
= 150000 - 50000 - 30000 - 15000 - 25000 = 30000
this rs. 30000 is amt of goodwill
C's share in goodwill is 30000*1/6 = 5000rs
now, C will purchase his share of goodwill frm A and B for rs.5000
hence capital of C is rs25000 - 5000 = 20000rs.
CA Paras jain
(Audit Senior Assistant)
(1544 Points)
Replied 20 November 2009
i think answer for this ques is given 19000 in module..
it ws my problm also during CPT. bt my teachers suggested me answer to be 20000 rs
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