29. Zafar and Zabin are partners with profit sharing ratio as 2:3. They admitted Zanne who brought * 80,000 as goodwill which was credited to Zafar's and Zubin's capital account as ? 60,000 and 20,000 respectively goodwill of the firm is ? 4,00,000 calle new profit sharing ratio. (a) 2:3:5 (b) 5:11:4 (c) 5:12:3 (d) Can't be determined?
Answers
Old Ratio (A and B) = 1 : 1
New Ratio (A and B) = 4 : 3
Sacrificing (or Gaining) Ratio = Old Ratio − New Ratio
∴ A’s Gain = 1/14
B’s Sacrifice = 1/14
"5 : 11 : 4"
Explanation:
Share of New Partner Zanne = Goodwill brought by admitted partner ÷
Goodwill of the Firm
= 80000/400000
= 8/40
Old Partners ratio = 2/5, 3/5 = 16/40 & 24/40
Sacrifice Ratio = 60000/20000 = 3 : 1
Zafar's Sacrifice = 8/40 x 3/4 = 24/160 = 6/40
Zabin's Sacrifice = 8/40 x 1/4 = 8/160 = 2/40
New Ratio = Old ratio - Sacrificing Ratio
i.e; Zafar = 2/5 - 6/40 = 16-6/40 = 10/40
Zubin = 3/5 - 2/40 = 24-2/40 = 22/40
Zanne = 8/40 = 8/40
Therefore,
New Profit Sharing Ratio = 10 : 22 : 8 i.e 5 : 11 : 4