M and N are partners sharing profit and loss in equal ratio. Their capital balances stood at ₹23,000 and ₹27,000 respectively. They wanted to grow their business and admitted P as a working partner for 1/3 rd share. P is
CS CSEET · Business Economics & Fundamentals of Accounting and Auditing · PYQS · December 2013
M and N are partners sharing profit and loss in equal ratio. Their capital balances stood at ₹23,000 and ₹27,000 respectively. They wanted to grow their business and admitted P as a working partner for 1/3 rd share. P is to bring capital in the proportion of his share of profit and besides capital, he is to bring ₹9,000 as goodwill. What will be the amount of capital to be brought in by P —
Answer & Explanation:
Correct Answer: Option (D)
Correct answer: (D) ₹29,500.. Adjusted old partners’ capital = 23,000 + 27,000 + 9,000 = 59,000, representing two-thirds. P’s capital is 59,000/2 = 29,500.
Topics: Fundamentals of Accounting and Auditing
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