What is the effect of admission of a new partner on Partnership? Post category:Accountancy Reading time:1 mins read SOLUTION When a new partner is admitted into the firm, it is known as admission of a new partner. On admission of a new partner, old partnership comes to an end and new partnership comes into existence. Please Share This Share this content Opens in a new window X Opens in a new window Facebook Opens in a new window Pinterest Opens in a new window LinkedIn Opens in a new window Viber Opens in a new window VK Opens in a new window Reddit Opens in a new window Tumblr Opens in a new window Viadeo Opens in a new window WhatsApp Read more articles Previous PostGive the accounting entry for unrecorded assets in case of reconstitution of a partnership firm. Next PostState with reason whether at the time of Admission of a Partner, partnership is dissolved or partnership firm is dissolved. (A1 2013) You Might Also Like X and Y are partners in a firm. X is entitled to a salary of Rs. 10,000 per month and commission of 10% of the net profit after partners’ salaries but before charging commission. Y is entitled to a salary of Rs. 25,000 p.a. and commission of 10% of the net profit after charging all commission and partners’ salaries. Net profit before providing for partners’ salaries and commission for the year ended 31st March, 2019 was Rs. 4,20,000. Show distribution of profit. July 21, 2022 What is meant by ‘Secured or Mortgage Debenture’? September 29, 2022 X, Y and Z are partners sharing profits in the ratio of 5 : 3 : 2. Y retires on 1st April, 2019 from the firm, on which date capitals of X, Y and Z after all adjustments are Rs. 1,03,680, Rs. 87,840 and Rs. 26,880 respectively. The Cash and Bank Balance on that date was Rs. 9,600. Y is to be paid through amount brought in by X and Z in such a way as to make their capitals proportionate to their new profit-sharing ratio which will be X 3/5 and Z 2/5. Calculate the amount to be paid or to be brought in by the continuing partners assuming that a minimum Cash and Bank balance of Rs. 7,200 was to be maintained and pass the necessary Journal entries. August 4, 2022 Leave a Reply Cancel replyYou must be logged in to post a comment.
X and Y are partners in a firm. X is entitled to a salary of Rs. 10,000 per month and commission of 10% of the net profit after partners’ salaries but before charging commission. Y is entitled to a salary of Rs. 25,000 p.a. and commission of 10% of the net profit after charging all commission and partners’ salaries. Net profit before providing for partners’ salaries and commission for the year ended 31st March, 2019 was Rs. 4,20,000. Show distribution of profit. July 21, 2022
X, Y and Z are partners sharing profits in the ratio of 5 : 3 : 2. Y retires on 1st April, 2019 from the firm, on which date capitals of X, Y and Z after all adjustments are Rs. 1,03,680, Rs. 87,840 and Rs. 26,880 respectively. The Cash and Bank Balance on that date was Rs. 9,600. Y is to be paid through amount brought in by X and Z in such a way as to make their capitals proportionate to their new profit-sharing ratio which will be X 3/5 and Z 2/5. Calculate the amount to be paid or to be brought in by the continuing partners assuming that a minimum Cash and Bank balance of Rs. 7,200 was to be maintained and pass the necessary Journal entries. August 4, 2022