Question

X and y are partners sharing profits in the ratio of 3:1 they admit z as a partner who pays rs 4000 as goodwill. The new profit sharing ration being 2:1:1 among x, y, z respectively. The amount of goodwill will be credited to

Answer 1

Answer:

old ratio= 3:1

new ratio=2:1:1

sacrifice of x = 3/4 -2/4 = 1/4

sacrifice of y = 1/4 - 1/4 = 0

Clearly , only x has sacrificed thus the whole amount of 4000 will be credited to x's Capital a/c  .