Abha and Beena were partners sharing profits and losses in the ratio of 3: 2. On April 1st 2013 they decided to admit Chanda for 1 / 5th share in the profits. They had a reserve of Rs. 25.000 which they wanted to show in their new balance sheet. Chanda agreed and the necessary adjustments were made in the books. On October 1st 2013, Abha met with an accident and died. Beena and Chanda decided to admit Abha’s daughter Fiza in their partnership, who agreed to bring Rs. 2,00,000 as capital. Calculate Abha’s share in the reserve on the date of her death. (C.B.S.E. Sample Paper, 2015)

SOLUTION

Abha’s share, in Reserve Rs. 12,000.
Working Note: New Ratio of Abha. Beena and Chanda 12: 8: 5. Hence, Abha’s
share in Reserve = 25,000 x 12 / 25 = Rs. 12,000.







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