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Question : X and Y are partners sharing profit and losses in the ratio of 2: 1. They admit Z into partnership with 1/4th share in profits which he acquires equally from X and Y. Z brings in Rs. 1,65,000 as capital and Rs. 30,000 as goodwill in cash. Partners capital account will be credited with _____ and new profit sharing between partners will be............

Option 1: X's credited with Rs 20,000 and Y with Rs 10,000, NPSR 13: 5: 6

Option 2: X's credited with Rs 15,000 and Y with Rs 15,000, NPSR is 3: 2: 1

Option 3: X's credited with Rs 15,000 and Y with Rs 15,000, NPSR is 13: 5: 6

Option 4: None of the above


Team Careers360 19th Jan, 2024
Answer (1)
Team Careers360 23rd Jan, 2024

Correct Answer: X's credited with Rs 15,000 and Y with Rs 15,000, NPSR is 13: 5: 6


Solution : Answer = X is credited with Rs 15,000 and Y with Rs 15,000 NPSR is 13: 5: 6

Particulars L.F. Dr. (Rs.) Cr. (Rs.)
Bank A/c Dr 1,95,000 1,95,000
To Z's Capital A/c 1,65,000
To Premium for Goodwill A/c
(The amount of capital and goodwill/premium brought in cash)
30,000
Premium for Goodwill A/c Dr. 30,000
To X's Capital A/c 15,000
To Y's Capital A/c
(Goodwill/premium transferred to old partners capitals in sacrifice ratio i.e., equally)
15,000

Calculation of new profit sharing ratios :
Z's share is $\frac{1}{4}$ which he acquires equally from X and Y.

Therefore, Z gets his share from $X=\frac{1}{2}$ of $\frac{1}{4}=\frac{1}{8}$

Z gets his share from $y=\frac{1}{2}$ of $\frac{1}{4}=\frac{1}{8}$

New Ratio of $X=\frac{2}{3}-\frac{1}{8}=\frac{13}{24}$

New Ratio of $y=\frac{1}{3}-\frac{1}{8}=\frac{5}{24}$

Thus, X: Y: Z
$\frac{13}{24}: \frac{5}{24}: \frac{1}{4}=\frac{13: 5: 6}{24}=13: 5: 6$ New Ratio

Hence, the correct option is 3.

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