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Anup and Swarup are partners sharing profits and losses equally. Their original capitals were Rs.20,000 and Rs.15,000 respectively. They admit Chand as their new partner with 1/5 share in profits. The revaluation of assets and liabilities show a profit of Rs.8,000. Goodwill has been valued at Rs.15,000. Chand is required to bring proportionate capital. How much capital should Chand bring? |
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Answer» Calculation of present capital of Anup and Swarup
The total Capital of Anup and Swarup together Rs.58,000(31,500+26,500). This is their capital for 4/5 share in profits. Thus total firm’s capital should be 58,000 x 5/4 = Rs.72,500. Therefore Chand should bring Rs.14,500(1/5 of Rs.72,500) as his capital. In case it is desired that capitals of the partners should be in their profit sharing ratio, the capital of Anup and Swarup may also be adjusted without changing the total capital of the firm. So according to this capitals of Anup and Swarup should br Rs.29,000 each. This means Swaupshoud bring Rs.25,00 and Anup should be paid Rs.25,00. |
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