Anita and Babita are partners sharing profits and losses as 3 : 2. Chandani is admitted and profit sharing ratio becomes 4:3:2. Goodwill is valued at 394,500. Chandani brings required goodwill in cash. Goodwill amount that will be credited by Chandani is: (A) Anita 14,000 and Babita 37,000 (B) Anita 12,000 and Babita 19,000 (C) Anita 15,000 A (D) Anita 21,000 (d) А Ans. Option (C) is correct.
Please explain briefly with all the steps.
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Answer:
A's old ratio= 2/7
B's old ratio= 5/7
C is admitted for 1/4th share.
Remaining share= 1-[1/4]
= 3/4
A's new share= 3/4 * 2/7
= 6/28
B's new share= 3/4 * 5/7
= 15/28
New Profit sharing ratio of partners= 6:15:7
(ii) Distribution of Goodwill:
A's share= 2/7 * 14000
= 4000
B's share= 5/7 * 14000
= 10000
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