Identify the correct sequence where new partner is to bring proportionate capital.
A. Calculation of Capital Balance of old partners
B. Preparation of Revaluation A/c
C. Determination of Revaluation gain/loss
D. Presentation of Treatment of Goodwill
E. Calculation of Capital to be brought in by the new partner
Choose the correct answer from the options given below:
Answer & explanation
Correct answer: option 4
The correct answer is Option (4) → B, C, D, A, E
The new partner’s capital is worked out from the old partners’ capitals after all adjustments, so every adjustment comes first:
(B) Preparation of Revaluation A/c — assets and liabilities are revalued.
(C) Determination of Revaluation gain/loss — the balance of the account is found and shared by the old partners.
(D) Presentation of Treatment of Goodwill — the new partner’s share of goodwill is adjusted.
(A) Calculation of Capital Balance of old partners — their adjusted capitals are now known.
(E) Calculation of Capital to be brought in by the new partner — his proportionate capital is found from the old partners’ combined capital and his share.
NCERT (2026-27 edition): |