B and C are partners sharing profits in the ratio of 3 : 2. Goodwill appears in the boo
3.000. D is admitted into partnership on payment of 20,000 for goodwill for 1/4th sh
and C sharing profits between themselves in the same proportion as before.
(a) Calculate the sacrificing ratio.
(b) Record the transactions assuming Goodwill Account will not appear in the books of B,Ca
Ans Sacrificing Ratio 3:21
Answers
Explanation:
answr
search
What would you like to ask?
12th
Accountancy
Reconstitution of a Partnership Firm - Admission of a Partner
Concept of Reconstitution of Partnership Firm
A and B are partners sharin...
ACCOUNTANCY
A and B are partners sharing profits in the ratio of 3:2. C is admitted into the firm for 1/5th share in the profit which he acquires equally from A and B. The new profit sharing ratio will be ________.
MEDIUM
Share
Study later
ANSWER
Old ratio (A and B) = 3 : 2
C is admitted for 1/5 th share
A's sacrifice in favour of C = (1/5) * (1/2) = (1/10)
B's sacrifice in favour of C = (1/5) * (1/2) = (1/10)
New ratio = Old ratio - Sacrificing ratio
A's new ratio = (3/5) - (1/10) = 5/10 or 1/5
B's new share = (2/5) - (1/10) = 3/10
C's share = A's sacrifice + B's sacrifice
= (1/10) + (1/10)
= 2/10
Therefore, new profit sharing ratio of A, B and C is 5 : 3 : 2