Vikas and Yogesh were in partnership sharing profits and losses in the ratio of 2:1. They admitted Kunal as a new partner. Kunal brought? 1,00,000 as his share of goodwill premium, which was entirely credited to Vikas's capital account. On the date of admission, goodwill of the firm was valued at 5,00,000. The new profit sharing ratio of Vikas, Yogesh and Kunal will be: explaination too
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Revalued Goodwill premium on kunal admission = Rs. 1,00,000
Premium for goodwill brought in cash by kunal= Rs. 5,00,000
So, kunal share in future profit = Rs. 5,00,000/Rs. 1,00,000 = 1/10
vikas account has only been credited by the premium brought in by kunal
So, vikas Sacrificing Share = Profit Share of kunal = 1/10
New Profit share of vikas = Old profit share - Sacrificing share
New profit share of vikas= 2/1 -1/10 = 5/10
Therefore,
New Profit Sharing Ratio = 2/10:4/10:1/10 = 5:4:1.
Premium for goodwill brought in cash by kunal= Rs. 5,00,000
So, kunal share in future profit = Rs. 5,00,000/Rs. 1,00,000 = 1/10
vikas account has only been credited by the premium brought in by kunal
So, vikas Sacrificing Share = Profit Share of kunal = 1/10
New Profit share of vikas = Old profit share - Sacrificing share
New profit share of vikas= 2/1 -1/10 = 5/10
Therefore,
New Profit Sharing Ratio = 2/10:4/10:1/10 = 5:4:1.
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