You visited us 1 times! Enjoying our articles? Unlock Full Access!

Byju's Answer

Standard X

Mathematics

Face Value and Market Value

A, B and C ...

Question

$A, B$ and $C$ are partners having capitals of $R s .3, 00, 000, R s . 2, 00, 000$ and $R s . 1, 00, 000$ . They admit $D$ as a partner for $1 / 5^{t h}$ share on $1^{s t}$ April,2018. On this day, the firm has reserve of $R s . 60, 000$ . $A$ and $B$ demand that reserve should be shared in proportion of capital whereas $C$ is of the opinion that it should be shared equally as they do not have partnership deed. $A$ and $B$ agree to $C^{'} s$ viewpoint.
What argument must have been put by $C$ that convinced both $A$ and $B$ ?

Open in App

Solution

C is correct. When there is no partnership agreement, reserves are shared equally among the partners. According to Section 24 of the Partnership Act, 1890, if there is no partnership deed in place, all profits and reserves are to be shared equally among the partners.

Suggest Corrections

Similar questions

Q. Jaspal and Rosy were partners with capital contribution of

R s . 10, 00, 000

and

R s . 5, 00, 000

respectively. They do not have a Partnership Deed. Jaspal wants that profits of the firm should be shared in their capital ratio. Rosy convinced Jaspal that profits should be shared equally. Explain how Rosy would have convinced Jaspal for sharing the profit equally.

X

and

Y

are partners sharing profits and losses equally. They admit

Z

as partner for

1 / 3^{r d}

share which he takes from

Y

Z

brings

R s . 50, 000

as his share of goodwill.

X

is of the opinion that goodwill brought by

Z

should be shared equally whereas

Y

is of the opinion that

R s . 50, 000

should be credited to his capital

X

finally agrees to

Y^{'} s

view.
What argument must been given by

Y

that made

X

agree?

Q. A and B are two partners sharing profit and loss equally. Their capital A/c stood at Rs.30,000 and Rs.25,000 respectively on 31st March, 2013. On 1st April C is admitted for 1/3rd share of profit for which he brings Rs.12,000 as his share of goodwill. On the date of his admission, stock was appreciated by Rs.11,000 and provisions for bad debts also increased by Rs.2,000. Old partners decided that C's capital should be in accordance with his share of profit and capital of old partners. What amount C should brings as his share of capital in the firm?

Q. A and B are in partnership with Rs.30,000 and Rs. 20,000 as their respective Capitals. They admitted C as a partner for 1/6th share in profits. The amount of C's share In the Capital of the firm if he is asked to bring in Capital in proportion to his profit sharing ratio will be ________.

A and B are partners in a firm sharing profits in the ratio of 7:5. On April 1, 2017 they admit C as a new partner for $\frac{1}{6} t h$ share. The new ratio will be 13 : 7 : 4. C contributed the following assets towards his capital and for his share of goodwill: Stock Rs 60,000; Debtors Rs 80,000; Land Rs 2,00,000; Plant and Machinery Rs 1,20,000. On the date of admission of C, the goodwill of the firm was valued at Rs 7,50,000. Record necessary journal entries in the books of the firm on C's admission and prepare C's capital account.

Join BYJU'S Learning Program