Hira and Meera are partners in a firm sharing profits and losses in the ratio of 3:2. Their capitals are Rs.60,000 and Rs.40000 respectively. They admit Kamala as a new partner who will get 1/6 th share in the profits if the firm. Kamala brings in Rs.25,000 as her capital. Find out the goodwill of the firm and also find out the value of goodwill which Kamala has to bring in to the business.
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Explanation:
Revalued Goodwill of the firm on Mitali's admission = Rs. 2,00,000
Premium for goodwill brought in cash by Mitali = Rs. 20,000
So, Mitali's share in future profit of the firm = Rs. 20,000/Rs. 2,00,000 = 1/10
Atul's account has only been credited by the premium brought in by Mitali
So, Atul's Sacrificing Share = Profit Share of Mitali = 1/10
New Profit share of Atul = Old profit share - Sacrificing share
New profit share of Atul = 3/5 -1/10 = 5/10
Therefore,
New Profit Sharing Ratio = 5/10:4/10:1/10 = 5:4:1.
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