Question

Vimal and Athi are partners sharing profits in the ratio of 2:1. Jeyam is admitted for 1/4 share
in the profits. Calculate the new profit sharing ratio and sacrificing ratio.​

Answer 1

Answer:

Explanation:

Old ratio (A and B) = 2 : 1

C is admitted for 1/4th share of profit

For 1/4 share C bring Rs. 30000 for goodwill

Therefore, goodwill of the firm = C's share of goodwill * Reciprocal of C's profit share

Total goodwill = Rs. 30000 * (4/1) = Rs. 120000