Question

A and B are partners sharing profits in ratio 3 ratio to the balance sheet stood as under 31st August 2016 on that day c is admitted as a partner a sacrifice is one third of a share and b one fourth of his share in favour of C following terms are agreed upon Goodwill is valued at 150000 c is to bring his share of goodwill in cash provision for doubtful that is 5%​ofdebtors

Answer 1

Explanation:

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