Question

a and b are in partnership sharing profits in the ratio of 3:2They take C as new partner. Goodwill of the firm is valued at 300000 and c brings 30000as his share of goodwill in cash which is entirely​

Answer 1

Explanation:

JOURNAL

1. A's Capital a/c.... Dr. 1800

B's Capital a/c.... Dr. 1200

To Goodwill a/c 3000

(Being goodwill written off in the ratio of 3:2)

2. Cash a/c.. Dr. 40000

To C's Capital a/c 30000

To Premium for goodwill a/c 10000

(Being capital and premium for goodwill brought in by C)

3. Premium for Goodwill a/c... Dr. 10000

To A's Capital a/c 5000

To B's Capital a/c 5000

(Being premium for goodwill brought in by C distributed among the partners in the ratio of 1:1)

Working Note:

1. Calculation of sacrificing ratio:

A's sacrifice= 3/5- 5/10= 1/10

B's sacrifice= 2/5- 3/10= 1/10

Sacrificing ratio= 1:1

2. Distribution of premium for goodwill:

A's share= 10000 * 1/2= 5000

B's share= 10000 * 1/2= 5000

Answer 2

Answer:

5:4:1

Explanation:

The complete question is:-

A and B are in partnership sharing profits in the ratio of 3:2. They take C as new partner. Goodwill of the firm is valued at 300000 and C brings 30000 as his share of goodwill in cash which is entirely​ credited to the capital account of A. New profit sharing ratio will be _______?