Ramesh and Suresh are partners sharing profits in the ratio of 2:1 respectively. (Ramesh Capital is ₹1,02,000 and Suresh Capital is ₹73,000). They admit Mahesh and agree to give him 1/5 th share in future profit. Mahesh
CS CSEET · Business Economics & Fundamentals of Accounting and Auditing · PYQS · June 2013
Ramesh and Suresh are partners sharing profits in the ratio of 2:1 respectively. (Ramesh Capital is ₹1,02,000 and Suresh Capital is ₹73,000). They admit Mahesh and agree to give him 1/5 th share in future profit. Mahesh brings ₹14,000 as his share of goodwill. He agrees to contribute capital in the new profit share ratio. How much capital will be brought by Mahesh?
Answer & Explanation:
Correct Answer: Option (C)
Correct answer: (C) ₹47,250. Existing adjusted capitals total 1,02,000 + 73,000 + 14,000 = 1,89,000, representing 4/5 of total capital. New capital = 1,89,000/4 = 47,250.
Topics: Fundamentals of Accounting
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