Question

X and Y are partners sharing profits in the ratio 2:3. They admit Z for 1/5 share of profits, for which he paid 1,20,000 for capital and 60,000 as goodwill. Find the capital balances for each partner taking Z’s capital as base capital.
Rs. 3,00,000; Rs. 1,20,000 and Rs. 1,20,000
Rs. 3,00,000; Rs. 1,20,000 and Rs. 1,80,000
Rs. 1,92,000; Rs. 2,88,000 and Rs. 1,20,000
Rs. 3,00,000; Rs. 1,80,000 and Rs. 1,80,000​

Answer 1

Answer:

New Profit sharing ratio = 1 - 1/5 = 4/5

A= 5/8 * 4/5 = 20/40  ;   B= 3/8 * 4/5 = 12/40 ;  C= 1/5 * 8/8 = 8/40

i.e. 5 ; 3 ; 2.

Capitals = 120000 * 5 = 600000

A - 600000 * 5/10 = 300000

B - 600000 * 3/10 = 180000