How to Solve Capital Adjustment Question in Admission of Partner- 12th Accounts CBSE

Generally capital adjustment are divided into two major part:

1. When new partner capital is given in the question: The new partner capital is given then capitals are to be adjusted as per new ratio and taking new partner capital as a base. After finding out the balance/ c/ d of old partner necessary adjustment can be made in cash or through current as the question is specified.

2. When new partner capital is not given in the question: When new partner capital is not given then there are two sub type of questions

(a) Adjust the capital as per combined capital of old partner:

(b) find out the capital of new partner as a total share in new firm or as proportionate capital

Note: When it is capital adjustment question and goodwill is not brough in cash then following journal entry could be passed.

C's current a/c Dr---{to be recorded in balance sheet asset side}

  To A's Capital a/c--{to be credited in capital capital in sacrificng ratio}

  To B's Capital A/c --{to be credited in capital capital in sacrificng ratio}