Let's break down the given problem step-by-step, where we deal with the values in Bubai and Rubai's balance sheet and make the necessary adjustments for Tubai's admission into the partnership.
### Step 1: Initial Values from the Balance Sheet
- Initial Value of Building: ₹10,000
- Initial Value of Plant: ₹5,000
- Capital of Bubai: ₹15,000
- Capital of Rubai: ₹10,000
### Step 2: Valuation Adjustments
We need to adjust the values of the Building and Plant, and also account for the Goodwill.
- Increased Value of Building: ₹2,000
- Increased Value of Plant: ₹3,000
- Goodwill: ₹5,000
### Step 3: Updated Value of Assets
After making the necessary adjustments, we recalculate the values:
- Final Value of Building: Initial Value + Increase = ₹10,000 + ₹2,000 = ₹12,000
- Final Value of Plant: Initial Value + Increase = ₹5,000 + ₹3,000 = ₹8,000
### Step 4: Calculation of Total Initial Capital
Total initial capital of Bubai and Rubai before adjustments:
- Total Initial Capital: ₹15,000 (Bubai) + ₹10,000 (Rubai) = ₹25,000
### Step 5: Calculation of Total Adjusted Capital
The total capital is adjusted by the increments in assets and goodwill:
- Total Adjusted Capital: ₹25,000 (Initial) + ₹2,000 (Building) + ₹3,000 (Plant) + ₹5,000 (Goodwill) = ₹35,000
### Step 6: Tubai’s Share Calculation
Tubai is to bring in capital equivalent to one-fifth of the total adjusted capital.
- Fraction of Share for Tubai: 1/5
- Tubai’s Required Capital: 1/5 * ₹35,000 = ₹7,000
### Final Summary
- Final Building Value: ₹12,000
- Final Plant Value: ₹8,000
- Total Initial Capital: ₹25,000
- Total Adjusted Capital: ₹35,000
- Tubai’s Contribution: ₹7,000
This completes the detailed step-by-step solution to the problem based on the balance sheet and adjustments.
