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Accountancy · 2023 · 3 marks
Reconstitution of a Partnership Firm – Admission of a PartnerAdmission of a New Partner3 marksshort answer
CBSE 2023 · Region 3 · Set 3 · Q20
A and B are partners in a firm sharing profits in the ratio of $\displaystyle 3$ : 2. C is $\displaystyle 1$ share in profits. The total capital of the firm admitted into the firm for $\displaystyle 4$ $\displaystyle 1$ of is agreed upon as ₹ $\displaystyle 2,00,000$ and C is to bring in cash equivalent to $\displaystyle 4$ this amount as his capital. The capitals of other partners are also to be adjusted in the ratio of their respective share in profits. The capitals of A and B after all adjustments are ₹ $\displaystyle 60,000$ and ₹ $\displaystyle 45,000$ respectively. Calculate the new capitals of A and B and pass necessary journal entries.
Marking-scheme solution
Solution:
Calculation of new capitals:
Total capital of the new firm= ₹$\displaystyle 2,00,000$
A’s new capital = $\displaystyle 9$/$\displaystyle 20$ of ₹$\displaystyle 2,00,000$
= ₹$\displaystyle 90,000$
B’s new capital= $\displaystyle 6$/$\displaystyle 20$ of ₹$\displaystyle 2,00,000$
= ₹$\displaystyle 60,000$
Books of A and B
JOURNAL
Date Particulars LF Dr. Cr.
Amount Amount
₹ ₹
(i)
Bank / Cash A/c Dr. $\displaystyle 50,000$
To C’s Capital A/c $\displaystyle 50,000$
(Cash brought in by C as his share of
capital)
(ii)
Bank / Cash A/c Dr. $\displaystyle 30,000$
To A’s Capital A/c $\displaystyle 30,000$
(Cash brought in by A for capital
adjustment)
(iii)
Bank A/c / Cash A/c Dr. $\displaystyle 30,000$
To B’s Capital A/c $\displaystyle 30,000$
(Cash brought in by B for capital
adjustment)
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CBSE Class 12 Accountancy past-paper question from the 2023board exam, with the answer as CBSE’s own marking scheme gives it. Where our answers come from.