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Partnership Accounts

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Osheen Bhattacharya

CA Final

144 Points Posted on 23 March 2010

A 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..

Replies (2)

ashish gupta

student

1926 Points Posted on 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