Question

A:B::3:1, 'C' is admitted for 1/3rd share of profits.

Journal entries:-
1- cash a/c... Dr. 9000
To premium for goodwill 9000
(amount brought by 'c' for goodwill)

2-premium for goodwill a/c... Dr. 9000
C's capital a/c... Dr. 6000
To a's capital a/c. 15000
(goodwill credited to sacrificing
partner)

3- b's capital a/c... Dr. 3750
To a's capital a/c. 3750
(being adjustment made on account
of change in profit sharing ratio)

Calculate new profit sharing ratio. ​

Answer 1

calculation of new profit sharing ratio :

share of incoming partner C =1/3 ; Remaining share = 1- 1/3 = 2/3

A's New share = 3/4 ×2/3

6/12

B's New share = 1/4 × 2/3

2/12

C's new share = 1/3 ×4/4

4/12

Thus, New Profit -sharing Ratio of A, B, C= 6:2:4