how to identity if weather it is of combined capital method or proportionate
Hey,
In case of admission, there can be two scenarios relating to adjustment of capital.
1. When capital of new partner is given
2. When capital of new partner is not given
So, whenever there is a question based on adjustment of capital, look whether new partner's capital is given or not. In case, the new partner's capital is given in the question itself then you need to adjust the capital of the old partners based on the total capital of the new firm. This total capital can be ascertained easily by multiplying the capital brought in by the new partner and reciprocal of his share.
On the other hand, when the capital of the new partner is not given in the question, then we need to ascertain the proportionate capital of the new partner based on the combined capital of the old partners.
However, it normally happens when you keep on piling-up your questions for few days and then on one day, you post them all in bulk. Rather following this practice, what you should ought to do is to keep posting your question every day within a range of 1 to 2 questions from each subject on per day basis. This ensures and enables us to make replies to your queries easily and effectively. This is what we have been guiding you. Hope you understand.
keep Posting!!
In case of admission, there can be two scenarios relating to adjustment of capital.
1. When capital of new partner is given
2. When capital of new partner is not given
So, whenever there is a question based on adjustment of capital, look whether new partner's capital is given or not. In case, the new partner's capital is given in the question itself then you need to adjust the capital of the old partners based on the total capital of the new firm. This total capital can be ascertained easily by multiplying the capital brought in by the new partner and reciprocal of his share.
On the other hand, when the capital of the new partner is not given in the question, then we need to ascertain the proportionate capital of the new partner based on the combined capital of the old partners.
However, it normally happens when you keep on piling-up your questions for few days and then on one day, you post them all in bulk. Rather following this practice, what you should ought to do is to keep posting your question every day within a range of 1 to 2 questions from each subject on per day basis. This ensures and enables us to make replies to your queries easily and effectively. This is what we have been guiding you. Hope you understand.
keep Posting!!