Osheen Bhattacharya (CA Final) (241 Points)
23 March 2010A and B are partners in a firm. they admit C.
it was decided dat C would contribute such an amount of capital in cash which should be proportionate to the combined capital accounts of A & B after makin all adjustments.
This is one of the adjustments in a problem dat was doin.can anyone explain how to treat it? if poss wid an example solved..
would be great help..
ashish gupta
( student)
(1922 Points)
Replied 23 March 2010
U have to calculate the closing balances of capital A/c of A and B. then watch the profit sharing ratio of all A.B and C say its 1:1:1. and the balances of A and B are 375000 combined. Then calculate the total capital of the firm i.e. (375000/2)*3
=562500 and the capital requird by C is (562500/3)*1 = 187500
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