If new partner has to bring proportionate capital which is not given, how is it determined?
If new partner has to bring proportionate capital which is not given, how is it determined?
Anurag Pathak Changed status to publish July 18, 2023
Step 1:
Calculate ‘Total Capital’ of New Firm as:
Total Adjusted Capital of Old Partners × Reciprocal of Total New Profit Share of Old Partners.
Step 2:
Calculate Capital of the New Partner as:
Total Capital (Step 1) × Profit Share of New Partner
Anurag Pathak Changed status to publish July 18, 2023
