Admission of partners

It means you have to adjust the Capital of A and B to make the capital of A B C in proportionate to their profit sharing ratio by taking C's capital As a base for calculating adjustment in other partners capital

Manoj Raj

CA Final

★ 12K+

05-Oct-22 14:30

Whole question understood Except this point I still stuck on it

Thread Starter

Nakul Dixit

CA Inter

★ 3K+

05-Oct-22 14:38

Suppose PSR is 3.2.1 C's capital is for example 1 lakh.. And balance in A and B capital is 4 lakh and 1 lakh respectively. In this case If C's capital is 1 lakh (1/6 share is one lakh) then total capital should be 6 laksh i .e 6 share. A's capital should be in the ratio of 3/6 (that is Profit sharing ratio) that is 3 lakhs ( one share = 1 lakh) and B'S capital should be 2 lakhs (profit sharing ratio is 2/6) By this... A should withdraw excess capital of One lakh ( 4 L - 3 L) B should bring additional capital of one lakh ( 2L - 1L) To make it Equal as per profit sharing ratio

Manoj Raj

CA Final

★ 12K+

05-Oct-22 14:45

Then first find total capital and all partners actual capitals And then find their balance and equal it.

Thread Starter

Nakul Dixit

CA Inter

★ 3K+

05-Oct-22 14:51

I have highlighted

Mohammad Badurul

CA Inter

★ 10K+

08-Oct-22 06:58