Target Exam

CUET

Subject

Accountancy Part A

Chapter

Admission of a Partner

Question:

Abhishek and Balkishan are partners sharing profits in the ratio of 2:1. Chandrika is admitted into the firm for 1/4 share of profits. Chandrika brings in Rs. 20,000 in respect of her capital. The capitals of old partners Abhishek and Balkishan, after all adjustments relating to goodwill, revaluation of assets and liabilities, etc., are Rs.45,000 and Rs.15,000 respectively. Calculate the cash to be brought in or paid off by the old partners to adjust their capitals in new ratio.

Options:

Rs. 5,000 each to be brought in by Abhishek and Balkishan

Rs. 5,000 to be withdrawn by Abhishek and Rs. 5,000 to be brought in by Balkishan

Rs. 5,000 to be brought in by Abhishek and Rs. 5,000 to be withdrawn by Balkishan

Rs. 5,000 each to be withdrawn by Abhishek and Balkishan

Correct Answer:

Rs. 5,000 to be withdrawn by Abhishek and Rs. 5,000 to be brought in by Balkishan

Explanation:

The correct answer is Option (2) → 

Rs. 5,000 to be withdrawn by Abhishek and Rs. 5,000 to be brought in by Balkishan