Question

1.12. A and B are partners in a firm sharing profits and losses in the ratio of 23.
is admitted for 1/5 share in the profits of the firm. If C gets it wholly from 4,
the new profit sharing ratio after C's admission will be :
(B) 3:1:1
(D) 1:3:1
(A) 1:3:3
(C) 2:2:1
12 Tha​

Answer 1

Answer:

b

Explanation:

1. 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