X any y share profits in the ratio 2:1 (X's capital =102,000 and Y's=73000) they admitted z and agreed to give him 1/5 in share. He brings Rs14000 as his share of goodwill. He agreed to contribute capital in profit sharing ratio. Capital brought by him will be?
the ans is given as 47250 how?
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Z agrees to contribute capital in the amount of 1/5 of the total capitalization of the business. The total capitalization includes the capital contributed by X and Y and Z and the goodwill brought by Z, so we have
(103000 + 72000 + 14000 + Z)/5 = Z
189000 + Z = 5Z
189000 = 4Z
47,250 = Z.
Check:
(103 + 72 + 14 + 47.25) /5 = 236.25/5 = 47.25
answered 4 months ago
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Total Firm capital = X Capital + Y Capital
= 102000+73000
= 175000
Z's Share= 175000/5
= 35000.
Z will bring Rs. 21000 becz he is bringing Rs. 14000 as a share of good will.
answered 4 months ago
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