Violet’ and indigo’ are partners in a flim shanng proirts and loss

1.	Violet’ and indigo’ are partners in a flim shanng proirts and losses in the ratio of 5:3 with a capital of Rs. 45,000 and Rs. 35,000 respectively. They admit ‘blue’ as a partner and the new profits sharing ratio becomes 5:3:2. Blue is asked to contribute to proportionate capital.a) Calculate the amount of capital to be contributed by ‘Blue’. b) What adjustments are to be made in the capitals of ‘Violet’ and ‘Indigo’ if it is agreed that the capitals of Violet and Indigo, as between themselves, are also to be adjusted in profit sharing ratio by either paying in or withdrawing cash?
Answer» Total capital of violet and Indigo = 45000 + 35000 = 80000 Total required capital = 80000 \(\times \frac{10}{8} = 1,00,000\) Blue's capital = 100000 \(\times \frac{2}{10} = 20,000\) Violet's new capital = 100000 \(\times \frac{5}{10}\) = 50,000 Indigo's new capital = 100000 \(\times \frac{3}{10} = 30,000\) Violet has a shortage = 50000 - 45000 = 5000 indigo has a surplus = 35000 - 300000 = 5000 Capital contributed by violet cash A/c Dr. 5,000 To violet's capital 5000 Surplus amount of capital withdrawn by indigo indigo capital A/c Dr. 5,000 To cash a/c 5000

Violet’ and indigo’ are partners in a flim shanng proirts and losses in the ratio of 5:3 with a capital of Rs. 45,000 and Rs. 35,000 respectively. They admit ‘blue’ as a partner and the new profits sharing ratio becomes 5:3:2. Blue is asked to contribute to proportionate capital.a) Calculate the amount of capital to be contributed by ‘Blue’. b) What adjustments are to be made in the capitals of ‘Violet’ and ‘Indigo’ if it is agreed that the capitals of Violet and Indigo, as between themselves, are also to be adjusted in profit sharing ratio by either paying in or withdrawing cash?

Answer»

Total capital of violet and Indigo = 45000 + 35000 = 80000

Total required capital = 80000 \(\times \frac{10}{8} = 1,00,000\)

Blue's capital = 100000 \(\times \frac{2}{10} = 20,000\)

Violet's new capital = 100000 \(\times \frac{5}{10}\) = 50,000

Indigo's new capital = 100000 \(\times \frac{3}{10} = 30,000\)

Violet has a shortage = 50000 - 45000 = 5000

indigo has a surplus = 35000 - 300000 = 5000

Capital contributed by violet

cash A/c Dr. 5,000

To violet's capital 5000

Surplus amount of capital withdrawn by indigo

indigo capital A/c Dr. 5,000

To cash a/c 5000