Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Admission of a Partner

Question:

A, B & C are partners sharing profits in the ratio of 5:4:1. Their capital accounts showing balance of ₹300000, ₹150000, ₹150000 respectively. It is decided between partners that they will share future profits equally. Firm has the following information-
Creditors- ₹110000
Salary payable- ₹30000
O/s expenses- ₹10000
General reserve- ₹40000
Bank balance- ₹210000
Sundry debtors- ₹100000
Provision for doubtful debts- ₹10000
Stock -₹50000
Furniture- ₹40000
Computers- ₹200000
Vehicle-₹200000

Calculate the gain of partner C.

Options:

1/30

2/30

5/30

7/30

Correct Answer:

7/30

Explanation:

Old ratio is 5:4:1
New ratio is 1:1:1
Gain of C = New share - old share
               = 1/3 -1/10
               = (10-3)30
               = 7/30