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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. |
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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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