Question

P and S au partners shasing profits in the ratio of 3:2
They aguce to take into paxtnership fox 1/5th share in
prelite, which T axquires
equally fuam and s. I beings
100,000 as capital and 50,000 as goodwill.
Poss necessary Journal and ascentain new profit sharing
ratio.​

Answer 1

Correct Question :

P and S are partners sharing profits in the ratio of 3:2. They admitt T into partnership for 1/5th share in which T acquires equally from P and S. T being brought ₹ 100,000 as capital and 50,000 as goodwill. Páss necessary Journal entries and ascertain new profit sharing ratio.

Solution :

Journal entries :

Cash ac Dr. 1,00,000

To T' s Capital ac. 50,000

To Goodwill ac. 50,000

( The amount brought in by T as capital and goodwill )

Goodwill ac Dr.

To P's Capital ac

To S's Capital ac

( Goodwill transferred to old partners account in ratio 3 : 2 )

Working Note :

Calculation Of New Ratio :

Old Ratio Of Partners = $\sf \: 3 : 2$

T's Share = $\sf \: \frac{1}{5} \: \: from \: both$

$\sf \frac{1}{10} \: from \: P \: And \: \frac{1}{10} \: from \: S$

New Share Of P :

$\sf \to \: Old \: Share \: - \frac{1}{10}$

$\to \sf \: \frac{3}{5} - \frac{1}{10}$

$\sf \to \: \frac{3 \times 2}{5 \times 2} - \frac{1}{10}$

$\sf \to \: \frac{6}{10} - \frac{1}{10}$

$\to \sf \: \frac{5}{10}$

New Share Of S :

$\sf\to \: \frac{2}{5} - \frac{1}{10}$

$\sf \to \: \frac{2 \times 2}{5 \times 2} - \frac{1}{10}$

$\sf \to \: \frac{4}{10} - \frac{1}{10}$

$\to \sf \: \frac{3}{10}$

New Share Of T :

$\to \sf Share \: of \: T\: = \frac{1}{5}$

$\sf \to \: \frac{1 \times 2}{5 \times 2}$

$\sf\to \: \frac{2}{10}$

$\to \sf \: \frac{5}{10} : \frac{3}{10} : \frac{2}{10}$

$\to \sf \: 5 : 3 : 2$

$\therefore \sf \: New \: Ratio \: of \: Partners \: = 5 : 3 : 2$