Question

A and B are partners sharing profit in the ratio of 3:2 . C is admitted as partner and pays rupees 5000 as premium if future profit sharing ratio of A B and C 3:3:2 goodwill created to A and B will be

Answer 1

Answer:

At the time of admission of a new partner, goodwill brought in by new partner is distributed among old partner in their old ratio.

Goodwill brought in by new partner = Total goodwill of firm * C's share of profit

Goodwill brought in by new partner = Rs. 9600 * (1/4) = Rs. 2400

Goodwill brought in by C on his admission is distributed among A and B in their old ratio i.e., 3 : 2

Amount withdrawn by-

A = Rs. 2400 * (3/5) = 1440

B = Rs. 2400 * (2/5) = 960

Explanation:

Answer 2

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