1.

A and B are partners in a firm sharing profit and loss as 3:2. They admitted C as a new partner. The profit and loss sharing ratio shall be so adjusted that between A and B the former ratio is maintained, while between B and C there shall be the same ratio as between A and B. What will be the new profit sharing ratio of all partners.​

Answer»

Answer:

Cash a/c..... DR. 21000

To Premium for goodwill a/c 21000

(Being Premium for goodwill brought in by C)

2. Premium for goodwill a/c.... Dr. 21000

To A's Capital a/c 9000

To B's Capital a/c 12000

(Being premium for goodwill brought in by C, distributed among the partners in the RATIO 3:4)

Working Note:

A's old share= 3/5

B's old share= 2/5

C is admitted as a new partner.

A's SACRIFICE= 3/5 * 1/5

= 3/25

B's sacrifice= 2/5 * 2/5

= 4/25

Sacrificing ratio= 3:4

C's share= 3/25 + 4/25

= 7/25

Hence, C's share of goodwill= 7/25 * 75000

= 21000



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