Question : P and S are partners sharing profits in the ratio of 3 : 2. R is admitted with 1/5th share and he brings in Rs.42,000 as his share of goodwill which is Credited to the Capital Accounts of P and S respectively with Rs.31,500 and Rs.10,500. New profit sharing ratio will be -
Option 1: 3 : 2 : 5
Option 2: 9 : 7 : 4
Option 3: 7 : 9 : 4
Option 4: 3 : 1 : 5
Correct Answer: 9 : 7 : 4
Solution : As here P and S has 3:2 as ratio before , they admit a new partner R for a share of 1/5 and he brings ₹42,000 as his share of goodwill which is credited to capital accounts of P and S with Rs.31,500 and Rs.10,500, the goodwill is divided between P and S in the ratio :-
= 31,500 : 10,500
= 3 : 1 (in the ratio of goodwill ), we will calculate the sacrifice made by P and S in the favor of new partner R's share of 1/5 =
sacrifice made by P = 1/5 * 3/4
= 3/20
sacrifice made by S = 1/5 * 1/4
= 1/20
now from this sacrifice we will calculate, the new profit sharing ratio of P and S :-
P's new ratio = old ratio - sacrifice made by P
= 3/5 - 3/2
= 9/20
S's new ratio = old ratio - sacrifice made by S
= 2/5 - 1/20
= 7/20
R's ratio = 1/5 0r 4/20 [ 9/20 : 7/20 : 1/5 = (9 + 7 + 4) / 20 ]
so, the new profit sharing ratio between P and S and R will be :-
= 9/20 : 7/20 : 4/20
= 9 : 7 : 4
Hence the correct answer is option 2.
Question : A, B, C and D are partners sharing profits in the ratio of 1:4:3:2. D died on 15th December 2021 and the goodwill is valued at Rs.2,00,000. D's share of goodwill is to be adjusted into the capital accounts of A, B and C who decide to share future profits in the ratio
Question : R, S and T are partners. Before changing their profit-sharing ratio to 5:3:2, they were sharing profit equally. Workmen's compensation reserve exited at Rs 1,00,000 against which a claim existed at Rs 20,000. The total amount that will be credited to their capital accounts
Question : X, Y and Z are partners in a firm sharing profits in the ratio of 3: 2: 1. On 1 st April, 2009, retires from the firm .X and Z agree that the capital of the new firm shall be fixed at Rs. 2,10,000 in the profit-sharing ratio.The Capital Accounts of X and Z after all
Question : The firm of P, Q and R with profit sharing ratio of 3: 6:1, h.ad the balance in General Reserve Account amounting Rs. 90,000. S joined as a new partner and the new profit sharing ratio was decided to be 3 : 3 : 3 : 1. Partners decide to keep the General Reserve unchanged
Question : P, R and S are in partnership sharing profits 4/8, 3/8 and 1/8 respectively. It is provided under the partnership deed that on the death of any partner his share of goodwill is to be valued at one-half of the net profits credited to his account during the last 4 completed
Regular exam updates, QnA, Predictors, College Applications & E-books now on your Mobile