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Cricket Academy Capital Adjustment Lab

Reconstitution of a Partnership Firm - Retirement/Death of a Partner

Learn how to adjust partners' capital accounts when a partner retires from a cricket coaching academy. Visualize the flow of capital adjustments and understand how continuing partners restructure their capital contributions.

30 min
Duration
3
Missions
11
Problems
160
XP

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📖 Your Story

You are the accountant for 'Champions Cricket Academy' in Bengaluru, a partnership firm run by three former Ranji Trophy players. When one partner retires, you must help the remaining partners adjust their capital contributions to maintain the new profit-sharing ratio.

What You'll Learn

  • Calculate new capital requirements based on new profit-sharing ratio
  • Identify excess or shortage in continuing partners' capital accounts
  • Record journal entries for bringing in additional capital or withdrawing excess capital
  • Understand three scenarios: specified total capital, unspecified total capital, and proportionate adjustment

How to Play

1Analyze the given profit-sharing ratio and calculate the new capital requirements for each continuing partner.
2Compare existing capital balances with required new capitals to identify surplus or deficit.
3Visualize the flow of adjustments through interactive capital flow diagrams.
4Record the necessary journal entries for capital adjustments.

3 Missions Await

1

Capital Calculation Challenge

4 problems · 40 XP

2

Proportionate Capital Adjustment

4 problems · 60 XP

3

Capital Adjustment Mastery

3 problems · 60 XP